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Nonlinearity, Complexity and Randomness in Economics: Towards Algorithmic Foundations for Economics

Nonlinearity, Complexity and Randomness in Economics: Towards Algorithmic Foundations for Economics

Stefano Zambelli (Editor), Donald A. R. George (Editor)

ISBN: 978-1-444-35031-9

Jan 2012

256 pages

In Stock

$35.95

Description

Nonlinearity, Complexity and Randomness in Economics presents a variety of papers by leading economists, scientists, and philosophers who focus on different aspects of nonlinearity, complexity and randomness, and their implications for economics. A theme of the book is that economics should be based on algorithmic, computable mathematical foundations.

  • Features an interdisciplinary collection of papers by economists, scientists, and philosophers
  • Presents new approaches to macroeconomic modelling, agent-based modelling, financial markets, and emergent complexity
  • Reveals how economics today must be based on algorithmic, computable mathematical foundations
Notes on Contributors vii

1. Introduction 1
Stefano Zambelli

2. Towards an Algorithmic Revolution in Economic Theory 7
K. Vela Velupillai

3. An Algorithmic Information-Theoretic Approach to the Behaviour of Financial Markets 37
Hector Zenil and Jean-Paul Delahaye

4. Complexity and Randomness in Mathematics: Philosophical Reflections on the Relevance for Economic Modelling 69
Sundar Sarukkai

5. Behavioural Complexity 85
Sami Al-Suwailem

6. Bounded Rationality and the Emergence of Simplicity Amidst Complexity 111
Cassey Lee

7. Emergent Complexity in Agent-Based Computational Economics 131
Shu-Heng Chen and Shu G.Wang

8. Non-Linear Dynamics, Complexity and Randomness: Algorithmic Foundations 151
K. Vela Velupillai

9. Stock-Flow Interactions, Disequilibrium Macroeconomics and the Role of Economic Policy 173
Toichiro Asada, Carl Chiarella, Peter Flaschel, Tarik Mouakil, Christian Proa˜no andWilli Semmler

10. Equilibrium Versus Market Efficiency: Randomness versus Complexity in Finance Markets 203
Joseph L. McCauley

11. Flexible Accelerator Economic Systems as Coupled Oscillators 211
Stefano Zambelli

12. Shifting Sands: Non-Linearity, Complexity and Randomness in Economics 237
Donald A.R. George

Index 241