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.:
- Janet L. Yellen, 2009.
"A Minsky meltdown: lessons for central bankers,"
70, Federal Reserve Bank of San Francisco.
- Arthur, W Brian, 1994. "Inductive Reasoning and Bounded Rationality," American Economic Review, American Economic Association, vol. 84(2), pages 406-411, May.
- 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.
- Kumaraswamy Velupillai, "undated". "The Computable Approach to Economics," Working Papers _005, University of California at Los Angeles, Center for Computable Economics.
- Rob Axtell, 1999.
"The Complexity of Exchange,"
Computing in Economics and Finance 1999
211, Society for Computational Economics.
- Roger E.A. Farmer, 2009.
"Confidence, Crashes and Animal Spirits,"
NBER Working Papers
14846, National Bureau of Economic Research, Inc.
- Carmen M. Reinhart & Kenneth S. Rogoff, 2009.
"This Time Is Different: Eight Centuries of Financial Folly,"
Princeton University Press,
edition 1, number 8973.
- 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 159-192, 06.
- 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.
- Brock, W.A., 1995.
"A Rational Route to Randomness,"
9530, Wisconsin Madison - Social Systems.
- Reinhart, Karmen & Rogoff, Kenneth, 2009. ""This time is different": panorama of eight centuries of financial crises," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 77-114, March.
- Nicolaas J. Vriend, 1999.
"Was Hayek an Ace?,"
403, Queen Mary University of London, School of Economics and Finance.
- Koppl, Roger & Whitman, Douglas Glen, 2004. "Rational-choice hermeneutics," Journal of Economic Behavior & Organization, Elsevier, vol. 55(3), pages 295-317, November.
- Albin, Peter S., 1982. "The metalogic of economic predictions, calculations and propositions," Mathematical Social Sciences, Elsevier, vol. 3(4), pages 329-358, December.
- 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.
- David Prychitko, 2010. "Competing explanations of the Minsky moment: The financial instability hypothesis in light of Austrian theory," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 23(3), pages 199-221, September.
- 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 119-137, February.
- Denzau, Arthur T & North, Douglass C, 1994.
"Shared Mental Models: Ideologies and Institutions,"
Wiley Blackwell, vol. 47(1), pages 3-31.
- Binmore, Ken, 1987. "Modeling Rational Players: Part I," Economics and Philosophy, Cambridge University Press, vol. 3(02), pages 179-214, 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.
- repec:trn:utwpde:0514 is not listed on IDEAS
- 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.
- 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.
- Virgil Storr, 2010. "Schütz on meaning and culture," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 23(2), pages 147-163, June.
- 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.
- Canning, David, 1992. "Rationality, Computability, and Nash Equilibrium," Econometrica, Econometric Society, vol. 60(4), pages 877-888, July.
- 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.
- 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.
- J. Barkley Rosser, 2009. "Computational and Dynamic Complexity in Economics," Chapters, in: Handbook of Research on Complexity, chapter 3 Edward Elgar Publishing.
- David H. Wolpert, 1996. "An Incompleteness Theorem for Calculating the Future," Working Papers 96-03-008, Santa Fe Institute.
- 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.
- Albert, Hans, 1988. "Hermeneutics and Economics: A Criticism of Hermeneutical Thinking in the Social Sciences," Kyklos, Wiley Blackwell, vol. 41(4), pages 573-602.
- 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.
- J. Barkley Rosser, 2006. "Complex Dynamics and Post Keynesian Economics," Chapters, in: Complexity, Endogenous Money and Macroeconomic Theory, chapter 4 Edward Elgar Publishing.
- 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.