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Blueprint For An Algorithmic Economics

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  • STEPHEN KINSELLA

    (Department of Economics, Kemmy Business School, University of Limerick, Ireland)

Abstract

Algorithmic economics helps us stipulate, formulate, and resolve economic problems in a more precise manner than mainstream mathematical economics. It does so by aligning theorizing about an economic problem with both the data generated by the real world and the computers used to manipulate that data. Theoretically coherent, numerically meaningful, and therefore policy relevant, answers to economic problems can be extrapolated more readily using algorithmic economics than present day mathematical economics. An algorithmic economics would allow mathematical economics to prove theorems relating toeconomicproblems, such as the existence of equilibria defined on some metric space, with embedded mechanisms for getting to the equilibria of these problems. A blueprint for such an economics is given and discussed with an example.

Suggested Citation

  • Stephen Kinsella, 2012. "Blueprint For An Algorithmic Economics," New Mathematics and Natural Computation (NMNC), World Scientific Publishing Co. Pte. Ltd., vol. 8(01), pages 101-111.
    • Handle: RePEc:wsi:nmncxx:v:08:y:2012:i:01:n:s1793005712400066
    DOI: 10.1142/S1793005712400066
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    References listed on IDEAS

    as
    1. Scarf, Herbert E., 1993. "The computation of equilibrium prices: An exposition," Handbook of Mathematical Economics, in: K. J. Arrow & M.D. Intriligator (ed.), Handbook of Mathematical Economics, edition 4, volume 2, chapter 21, pages 1007-1061, Elsevier.
    2. Manfred Gilli & Peter Winker, 2008. "Review of Heuristic Optimization Methods in Econometrics," Working Papers 001, COMISEF.
    3. Velupillai, K., 2000. "Computable Economics: The Arne Ryde Memorial Lectures," OUP Catalogue, Oxford University Press, number 9780198295273.
    Full references (including those not matched with items on IDEAS)

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