From Simplistic to Complex Systems in Economics

Foster, John (2004) From Simplistic to Complex Systems in Economics. Discussion Paper No. 335, School of Economics, The University of Queensland.

Attached Files (Some files may be inaccessible until you login with your UQ eSpace credentials)
Name Description MIMEType Size Downloads
econ_dp_335_oct0.pdf econ_dp_335_oct0.pdf application/pdf 147.47KB 1401

Author Foster, John
Title From Simplistic to Complex Systems in Economics
School, Department or Centre School of Economics
Institution The University of Queensland
Report Number Discussion Paper No. 335
Publication date 2004-10-01
Start page 1
End page 28
Total pages 28
Language eng
Subject K
1401 Economic Theory
149999 Economics not elsewhere classified
Abstract/Summary The applicability of complex systems theory in economics is evaluated and compared with standard approaches to economic theorizing based upon constrained optimization. A complex system is defined in the economic context and differentiated from complex systems in physio-chemical and biological settings. It is explained why it is necessary to approach economic analysis from a network, rather than a production and utility function perspective, when we are dealing with complex systems. It is argued that much of heterodox thought, particularly in neo-Schumpeterian and neo-Austrian evolutionary economics, can be placed within a complex systems perspective upon the economy. The challenge is to replace prevailing 'simplistic' theories, based in constrained optimization, with 'simple' theories, derived from network representations in which value is created through the establishment of new connections between elements.
Keyword systems theory
complex system
economic theory
optimisation

 
Versions
Version Filter Type
Citation counts: TR Web of Science Citation Count  Cited 51 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 71 times in Scopus Article | Citations
Google Scholar Search Google Scholar
Access Statistics: 353 Abstract Views, 1400 File Downloads  -  Detailed Statistics
Created: Thu, 14 Oct 2004, 10:00:00 EST by Belinda Weaver (EA) on behalf of School of Economics