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Modeling Complex Systems

  • XEPAPADEAS, Anastasios

Abstract Empirical observations suggest that linear dynamics are not an adequate representa- tion of ecological systems and that a realistic representation would require adoption of complex nonlinear dynamical systems with characteristics encountered in complex adaptive systems (CAS). Adequate modelling should include and combine, among others, strategic interactions among economic agents, nonconvexities induced by non-linear feedbacks, separate spatial and temporal scales and modeling of spatiotempo-ral dynamics, and allowance of alternative time scales. Ignoring these characteristics might obscure very important features that we observe in reality such as bifurcations and irreversibilities or hysteresis. As a consequence, the design of policies that do not take CAS characteristics into account might lead to erroneous results and undesirable states of managed economic-ecological systems.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 17498.

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Date of creation: 15 Aug 2009
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Handle: RePEc:pra:mprapa:17498
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  1. Brock, William & Xepapadeas, Anastasios, 2008. "Pattern Formation, Spatial Externalities and Regulation in Coupled Economic-Ecological Systems," MPRA Paper 9105, University Library of Munich, Germany.
  2. Wagener, F. O. O., 2003. "Skiba points and heteroclinic bifurcations, with applications to the shallow lake system," Journal of Economic Dynamics and Control, Elsevier, vol. 27(9), pages 1533-1561, July.
  3. Mäler, K-G. & Xepapadeas, A. & de Zeeuw, A.J., 2003. "The economics of shallow lakes," Other publications TiSEM 368f83ad-bc2f-4ad4-b603-8, Tilburg University, School of Economics and Management.
  4. Grimsrud, Kristine M. & Huffaker, Ray, 2006. "Solving multidimensional bioeconomic problems with singular-perturbation reduction methods: Application to managing pest resistance to pesticidal crops," Journal of Environmental Economics and Management, Elsevier, vol. 51(3), pages 336-353, May.
  5. Robert E. Lucas, Jr., 2001. "Externalities and Cities," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 4(2), pages 245-274, April.
  6. Mahon, Robin & McConney, Patrick & Roy, Rathindra N., 2008. "Governing fisheries as complex adaptive systems," Marine Policy, Elsevier, vol. 32(1), pages 104-112, January.
  7. Brock, W. A. & Xepapadeas, A., 2004. "Management of interacting species: regulation under nonlinearities and hysteresis," Resource and Energy Economics, Elsevier, vol. 26(2), pages 137-156, June.
  8. W.A. Brock & D. Starrett, 2003. "Managing Systems with Non-convex Positive Feedback," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 26(4), pages 575-602, December.
  9. Danny Quah, 2002. "Spatial Agglomeration Dynamics," CEP Discussion Papers dp0521, Centre for Economic Performance, LSE.
  10. Goetz, Renan U. & Zilberman, David, 2000. "The dynamics of spatial pollution: The case of phosphorus runoff from agricultural land," Journal of Economic Dynamics and Control, Elsevier, vol. 24(1), pages 143-163, January.
  11. Anne-Sophie Crépin, 2007. "Using Fast and Slow Processes to Manage Resources with Thresholds," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 36(2), pages 191-213, February.
  12. Robert E. Lucas & Esteban Rossi-Hansberg, 2002. "On the Internal Structure of Cities," Econometrica, Econometric Society, vol. 70(4), pages 1445-1476, July.
  13. James E. Wilen, 2007. "Economics of Spatial-Dynamic Processes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(5), pages 1134-1144.
  14. Kossioris, G. & Plexousakis, M. & Xepapadeas, A. & de Zeeuw, A. & Mäler, K.-G., 2008. "Feedback Nash equilibria for non-linear differential games in pollution control," Journal of Economic Dynamics and Control, Elsevier, vol. 32(4), pages 1312-1331, April.
  15. Sanchirico, James N. & Wilen, James E., 2005. "Optimal spatial management of renewable resources: matching policy scope to ecosystem scale," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 23-46, July.
  16. Quah, Danny, 2002. "Spatial Agglomeration Dynamics," CEPR Discussion Papers 3208, C.E.P.R. Discussion Papers.
  17. Partha Dasgupta & Karl-Göran Mäler, 2003. "The Economics of Non-Convex Ecosystems: Introduction," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 26(4), pages 499-525, December.
  18. Smith, Martin D. & Sanchirico, James N. & Wilen, James E., 2009. "The economics of spatial-dynamic processes: Applications to renewable resources," Journal of Environmental Economics and Management, Elsevier, vol. 57(1), pages 104-121, January.
  19. William Brock & Anastasios Xepapadeas, 2004. "Ecosystem Management in Models of Antagonistic Species Coevolution," Working Papers 0503, University of Crete, Department of Economics.
  20. Huffaker, Ray & Hotchkiss, Rollin, 2006. "Economic dynamics of reservoir sedimentation management: Optimal control with singularly perturbed equations of motion," Journal of Economic Dynamics and Control, Elsevier, vol. 30(12), pages 2553-2575, December.
  21. Sanchirico, James N. & Wilen, James E., 1999. "Bioeconomics of Spatial Exploitation in a Patchy Environment," Journal of Environmental Economics and Management, Elsevier, vol. 37(2), pages 129-150, March.
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