Some epistemological implications of economic complexity
I review some epistemological implications of economic complexity, with an emphasis on Turing computability and algorithmic information theory. I examine an argument from F.A. Hayek's theory of complex phenomena in this context and discuss the apparent implication that economic complexity prevents us from eliminating literary methods from economic science. If literary methods are a necessary part of economic science, then the highest level of mathematical rigor may not ensure high quality analysis if the literary methods we use are not equally rigorous. Hayek seems to point to a literary tradition in social science that may have established informative standards of rigor for the literary parts of economic science.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Koppl, Roger & Whitman, Douglas Glen, 2004. "Rational-choice hermeneutics," Journal of Economic Behavior & Organization, Elsevier, vol. 55(3), pages 295-317, November.
- Rob Axtell, 1999.
"The Complexity of Exchange,"
Computing in Economics and Finance 1999
211, Society for Computational Economics.
- J. Barkley Rosser, 2006. "Complex Dynamics and Post Keynesian Economics," Chapters, in: Complexity, Endogenous Money and Macroeconomic Theory, chapter 4 Edward Elgar Publishing.
- Kumaraswamy Velupillai, . "The Computable Approach to Economics," Working Papers _005, University of California at Los Angeles, Center for Computable Economics.
- Denzau, Arthur T & North, Douglass C, 1994.
"Shared Mental Models: Ideologies and Institutions,"
Wiley Blackwell, vol. 47(1), pages 3-31.
- Ronald Fagin & Joseph Y. Halpern & Yoram Moses & Moshe Y. Vardi, 2003. "Reasoning About Knowledge," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262562006, December.
- Brock, W.A. & Hommes, C.H., 1996.
"A Rational Route to Randomness,"
9530r, Wisconsin Madison - Social Systems.
- Binmore, Ken, 1987. "Modeling Rational Players: Part I," Economics and Philosophy, Cambridge University Press, vol. 3(02), pages 179-214, October.
- Lewis, Alain A., 1992. "Some aspects of effectively constructive mathematics that are relevant to the foundations of neoclassical mathematical economics and theory of games," Mathematical Social Sciences, Elsevier, vol. 24(2-3), pages 209-235, November.
- George A. Akerlof, 2009. "How Human Psychology Drives the Economy and Why It Matters," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1175-1175.
- Carmen M. Reinhart & Kenneth S. Rogoff, 2009.
"This Time Is Different: Eight Centuries of Financial Folly,"
Princeton University Press,
edition 1, number 8973, 01-2013.
- Carmen M. Reinhart & Kenneth S. Rogoff, 2009.
"Varieties of Crises and Their Dates
[This Time Is Different: Eight Centuries of Financial Folly]," Introductory Chapters, Princeton University Press.
- Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "Varieties of Crises and Their Dates
- J. Barkley Rosser, 2009. "Computational and Dynamic Complexity in Economics," Chapters, in: Handbook of Research on Complexity, chapter 3 Edward Elgar Publishing.
- Albin, Peter S., 1982. "The metalogic of economic predictions, calculations and propositions," Mathematical Social Sciences, Elsevier, vol. 3(4), pages 329-358, December.
- Frydman Roman & Goldberg Michael D., 2009. "Financial Markets and the State: Long Swings, Risk, and the Scope of Regulation," Capitalism and Society, De Gruyter, vol. 4(2), pages 1-45, October.
- McFadden, Daniel, 1979. "A note on the computability of tests of the strong axiom of revealed preference," Journal of Mathematical Economics, Elsevier, vol. 6(1), pages 15-16, March.
- Markose, Sheri M, 2004.
"Computability and Evolutionary Complexity: Markets As Complex Adaptive Systems (CAS),"
Economics Discussion Papers
3730, University of Essex, Department of Economics.
- Sheri M. Markose, 2005. "Computability and Evolutionary Complexity: Markets as Complex Adaptive Systems (CAS)," Economic Journal, Royal Economic Society, vol. 115(504), pages F159-F192, 06.
- Roger Koppl & J. Barkley Rosser Jr, 2002. "All That I Have to Say Has Already Crossed Your Mind," Metroeconomica, Wiley Blackwell, vol. 53(4), pages 339-360, November.
- Roger E. A. Farmer, 2012.
"Confidence, Crashes and Animal Spirits,"
Royal Economic Society, vol. 122(559), pages 155-172, 03.
- Virgil Storr, 2010. "Schütz on meaning and culture," The Review of Austrian Economics, Springer, vol. 23(2), pages 147-163, June.
- J. Barkley Rosser, Jr., 2001. "Alternative Keynesian and Post Keynesian Perspectives on Uncertainty and Expectations," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 23(4), pages 545-566, July.
- Nicolaas J. Vriend, 1999.
"Was Hayek an Ace?,"
403, Queen Mary University of London, School of Economics and Finance.
- Albert, Hans, 1988. "Hermeneutics and Economics: A Criticism of Hermeneutical Thinking in the Social Sciences," Kyklos, Wiley Blackwell, vol. 41(4), pages 573-602.
- David Prychitko, 2010. "Competing explanations of the Minsky moment: The financial instability hypothesis in light of Austrian theory," The Review of Austrian Economics, Springer, vol. 23(3), pages 199-221, September.
- Arthur, W Brian, 1994. "Inductive Reasoning and Bounded Rationality," American Economic Review, American Economic Association, vol. 84(2), pages 406-11, May.
- Roger Koppl & Barkley Rosser, 2002. "All that I have to say will already have crossed your mind," Computing in Economics and Finance 2002 185, Society for Computational Economics.
- Bartholo, R.S. & Cosenza, C.A.N. & Doria, F.A. & de Lessa, C.T.R., 2009. "Can economic systems be seen as computing devices?," Journal of Economic Behavior & Organization, Elsevier, vol. 70(1-2), pages 72-80, May.
- Mirowski, Philip, 2007. "On kicking the habit: A response to the JEBO Symposium on "Markets Come to Bits"," Journal of Economic Behavior & Organization, Elsevier, vol. 63(2), pages 359-371, June.
- Canning, David, 1992. "Rationality, Computability, and Nash Equilibrium," Econometrica, Econometric Society, vol. 60(4), pages 877-88, July.
- Janet L. Yellen, 2009.
"A Minsky meltdown: lessons for central bankers,"
FRBSF Economic Letter,
Federal Reserve Bank of San Francisco, issue may1.
- K. Vela Velupillai, 2005.
"The impossibility of an effective theory of policy in a complex economy,"
Department of Economics Working Papers
0514, Department of Economics, University of Trento, Italia.
- K. Vela Velupillai, 2005. "The impossibility of an Effective Theory of Policy in a Complex Economy," Working Papers 0094, National University of Ireland Galway, Department of Economics, revised 2005.
- Mirowski, Philip, 2007. "Markets come to bits: Evolution, computation and markomata in economic science," Journal of Economic Behavior & Organization, Elsevier, vol. 63(2), pages 209-242, June.
- Gode, Dhananjay K & Sunder, Shyam, 1993. "Allocative Efficiency of Markets with Zero-Intelligence Traders: Market as a Partial Substitute for Individual Rationality," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 119-37, February.
- David H. Wolpert, 1996. "An Incompleteness Theorem for Calculating the Future," Working Papers 96-03-008, Santa Fe Institute.
- Dequech, David, 2006. "The new institutional economics and the theory of behaviour under uncertainty," Journal of Economic Behavior & Organization, Elsevier, vol. 59(1), pages 109-131, January.
- J. Barkley Rosser, 1999. "On the Complexities of Complex Economic Dynamics," Journal of Economic Perspectives, American Economic Association, vol. 13(4), pages 169-192, Fall.
When requesting a correction, please mention this item's handle: RePEc:eee:jeborg:v:76:y:2010:i:3:p:859-872. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.