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Dynamic coordinating non-equilibrium

Author

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  • Santiago J. Gangotena

    (Universidad San Francisco de Quito USFQ)

Abstract

Neo-Walrasian conceptualizations and DSGE models are incompatible with the emergence of coordination and discoordination in economic activity. While many conceptualizations stemming from the Austrian tradition are generally consistent with these fundamental problems, their process driven approach is hampered by the use of equilibrium constructs. This paper argues for the adoption of formal models that avoid this problem by addressing the following questions. Why should Austrian macroeconomists model? Where do models fit in with respect to pure and applied theory? How to model without equilibrium? To answer this final question I present a structure that aids in the construction and communication of such models.

Suggested Citation

  • Santiago J. Gangotena, 2017. "Dynamic coordinating non-equilibrium," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 30(1), pages 51-82, March.
    • Handle: RePEc:kap:revaec:v:30:y:2017:i:1:d:10.1007_s11138-016-0355-y
    DOI: 10.1007/s11138-016-0355-y
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    Cited by:

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    More about this item

    Keywords

    Economic methodology; Agent based computational economics; Neo Austrian; Coordination;
    All these keywords.

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • B53 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Austrian
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • P11 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Planning, Coordination, and Reform

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