Journal of Economic Perspectives: Vol. 13 No. 4 (Fall 1999)
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On the Complexities of Complex Economic Dynamics
Rosser, J Barkley. 1999. "On the Complexities of Complex Economic Dynamics." Journal of Economic Perspectives, 13(4): 169-192.
Complex economic nonlinear dynamics endogenously do not converge to a point, a limit cycle, or an explosion. Their study developed out of earlier studies of cybernetic, catastrophic, and chaotic systems. Complexity analysis stresses interactions among dispersed agents without a global controller, tangled hierarchies, adaptive learning, evolution, and novelty, and out-of-equilibrium dynamics. Complexity methods include interacting particle systems, self-organized criticality, and evolutionary game theory, to simulate artificial stock markets and other phenomena. Theoretically, bounded rationality replaces rational expectations. Complexity theory influences empirical methods and restructures policy debates.
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Rosser, J. Barkley (James Madison U)
C61: Optimization Techniques; Programming Models; Dynamic Analysis
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