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The Complexity Era in Economics

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  • Richard Holt
  • J. Barkley Rosser
  • David Colander

Abstract

This article argues that the neoclassical era in economics has ended and is being replaced by a new era. What best characterizes the new era is its acceptance that the economy is complex, and thus that it might be called the complexity era. The complexity era has not arrived through a revolution. Instead, it has evolved out of the many strains of neoclassical work, along with work done by less orthodox mainstream and heterodox economists. It is only in its beginning stages. The article discusses the work that is forming the foundation of the complexity era, and how that work will likely change the way in which we understand economic phenomena and the economics profession.

Suggested Citation

  • Richard Holt & J. Barkley Rosser & David Colander, 2011. "The Complexity Era in Economics," Review of Political Economy, Taylor & Francis Journals, vol. 23(3), pages 357-369.
  • Handle: RePEc:taf:revpoe:v:23:y:2011:i:3:p:357-369
    DOI: 10.1080/09538259.2011.583820
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Lino Sau, 2013. "Instability and Crisis in Financial Complex Systems," Review of Political Economy, Taylor & Francis Journals, vol. 25(3), pages 496-511, July.
    2. repec:spr:joevec:v:27:y:2017:i:4:d:10.1007_s00191-017-0512-x is not listed on IDEAS
    3. Roos, Michael W. M., 2015. "The macroeconomics of radical uncertainty," Ruhr Economic Papers 592, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    4. Scott A. Beaulier & Franklin G. Mixon & Richard J. Cebula, 2014. "Can't see the tacking for the trees? Try a Coasian solution," Chapters,in: New Developments in Economic Education, chapter 11, pages 126-132 Edward Elgar Publishing.
    5. Mornati, Fiorenzo & Becchio, Giandomenica & Marchionatti, Roberto & Cassata, Francesco, 2009. ""Quando l'economica italiana non era seconda a nessuno" Luigi Einaudi e la Scuola di Economia a Torino," CESMEP Working Papers 200910, University of Turin.
    6. Elsner, Wolfram, 2017. "Policy and State in Complexity Economics," EconStor Preprints 158766, ZBW - German National Library of Economics.
    7. Fontana, Magda, 2010. "Can neoclassical economics handle complexity? The fallacy of the oil spot dynamic," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 584-596, December.
    8. repec:wsi:serxxx:v:57:y:2012:i:02:n:s0217590812500099 is not listed on IDEAS
    9. Elsner, Wolfram, 2015. "Policy Implications of Economic Complexity and Complexity Economics," MPRA Paper 63252, University Library of Munich, Germany.
    10. Harper, David A. & Endres, Anthony M., 2012. "The anatomy of emergence, with a focus upon capital formation," Journal of Economic Behavior & Organization, Elsevier, vol. 82(2), pages 352-367.
    11. Orlando Gomes, 2012. "Endogenous Heterogeneity, the Propagation of Information and Macroeconomic Complexity," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 6(1), pages 38-58, March.
    12. Gagliardi, Dimitri & Niglia, Francesco & Battistella, Cinzia, 2014. "Evaluation and design of innovation policies in the agro-food sector: An application of multilevel self-regulating agents," Technological Forecasting and Social Change, Elsevier, vol. 85(C), pages 40-57.
    13. Roos Michael W. M., 2015. "Die Komplexitätsökonomik und ihre Implikationen für die Wirtschaftspolitik," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 16(4), pages 379-392, December.
    14. Simone Caschili & Francesca Medda & Alan Wilson, 2015. "An Interdependent Multi-Layer Model: Resilience of International Networks," Networks and Spatial Economics, Springer, vol. 15(2), pages 313-335, June.

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