Why Is Economics Not a Complex Systems Science?

@article{Foster2006WhyIE,
  title={Why Is Economics Not a Complex Systems Science?},
  author={John Foster},
  journal={Journal of Economic Issues},
  year={2006},
  volume={40},
  pages={1069 - 1091}
}
  • J. Foster
  • Published 1 December 2006
  • Economics
  • Journal of Economic Issues
Economics is viewed as a discipline that is mainly concerned with 'simplistic' theorizing, centered upon constrained optimization. As such, it is ahistorical and outcome focused, ie, it does not deal with economic processes. It is argued that all parts of the economy are inhabited by complex adaptive systems operating in complicated historical contexts and that this should be acknowledged at the core of economic analysis. It is explained how economics changes in fundamental ways when such a… 
Complexity Economics as Heterodoxy: Theory and Policy
Abstract: Complexity economics has quickly become a powerful research program for real-world economics in recent years. This article provides an overview of complexity economics, and argues that it
Policy Implications of Economic Complexity and Complexity Economics
Policy implications of complexity economics (CE) are investigated. CE deals with “Complex Adaptive (Economic) Systems” [CA(E)S], generally characterized by mechanisms and properties such as
Policy and State in Complexity Economics
Complexity economics has developed into a powerful empirical, theoretical, and computational research program in the last three decades, advancing more realistic economics. It converges with
Complexity Thinking and Evolutionary Economic Geography
Thus far, most of the work towards the construction of an evolutionary economic geography has drawn upon a particular version of evolutionary economics, namely the Nelson-Winter framework, which
A formal psychological theory for evolutionary economics
The purpose of this paper is to seek to rise to the challenge posed by Harstad and Selten by providing a single unifying model of the psychological processes underlying the behaviour which drives the
Implications of Economic Complexity and Complexity
Complexity economics has developed into a promising cutting-edge research program for a more realistic economics in the last three or four decades. Also some convergent microand macro-foundations
Schumpeter and the Evolutionary Economics: Three Conceptual Issues
  • Economics
  • 2008
Schumpeter is usually considered as the leading figure of the evolutionary economics, despite his own reservations about applying principles of evolutionary biology into economics. In regard of the
Rediscovering the Economics of Keynes in an Agent-Based Computational Setting
TLDR
The presented agent-based Keynesian model demonstrates, as argued by Keynes, that the economy can self-organize without relying on price movement as an equilibrating factor, however, in the implementation,Self-organization does not mean a steady long run equilibrium but a tendency to generate cycles.
Linking complexity economics and systems thinking, with illustrative discussions of urban sustainability
The expanding research of complexity economics has been signalling its preference for a formal quantitative investigation of diverse interactions between heterogeneous agents at the lower,
Why economic theory has little to say about the causes and effects of inequality
In this paper we discuss and critique the theory (and lack thereof) on inequality in economics. We suggest that the discipline is uncomfortable on the whole with analysing the phenomenon and that
...
...

References

SHOWING 1-10 OF 107 REFERENCES
From simplistic to complex systems in economics
The applicability of complex systems theory in economics is evaluated and compared with standard approaches to economic theorising based upon constrained optimisation. A complex system is defined in
Is there a role for transaction cost economics if we view firms as complex adaptive systems
This article assesses the usefulness of transaction cost economics when we view economic organizations, such as firms, as complex adaptive systems. Modern complexity science is radically different in
An evolutionary theory of economic change
This study develops an evolutionary theory of the capabilities and behavior of business firms operating in a market environment. It includes both general discussion and the manipulation of specific
Alfred Marshall on economic biology
This article examines the sequence of ideas which led Marshall to conclude that economic growth is organic in nature and that its analysis must be based on a bilogical not a mechanical analogue. At
How Economics Became a Mathematical Science
How Economics Became a Mathematical Science By E. Roy Weintraub. Durham, NC: Duke University Press. 2002. Pp. xiii, 313. $18.95 (paperback). It is a contemporary truism that if you hope to make a
Why Economics is not an Evolutionary Science
A reprint of the article "Why is economics not an evolutionary science?," by T. Veblen, published in the "Quarterly Journal of Economics" is presented. The article questions the premise that physics
Economics and the Self-Organisation Approach: Alfred Marshall Revisited
The economics of Alfred Marshall is reassessed in the light of new developments in the natural sciences whereby a nonequilibrium thermodynamic approach is adopted to analyze self-organization in
Adaptive Economic Growth
This paper develops an evolutionary theory of adaptive growth, understood as a product of structural change and economic self-transformation, based upon processes that are closely connected with but
...
...