Re:Foundations of Complexity Economics
by belZaah on Saturday April 17, 2021 @02:04AM
(#26841945)
> "Complexity economics", in form of dynamic systems and chaos theory (for example) had its time in the sun, since the 70's actually, without leading to convincing new insights
This is really interesting. The system dynamics folks at the MIT would probably disagree. The extent to which dynamic systems explains outcomes of fluctuating forces in the economy is certainly useful. That said, SD has a communication problem: even if models can explain system behaviour and pinpoint required corrective action, people have difficulty internalizing these. Humans are not very good at applying differential equations to their everyday lives. So maybe this is why the field can be said not to have "lead to convincing new insights" in economics?
Re:Foundations of Complexity Economics
by zwaps on Saturday April 17, 2021 @07:26AM
(#26843416)
Could you give an example of thoughts, approaches or papers from system dynamics that you consider most significant?
Perhaps it is more of a macro thing?
This is really interesting. The system dynamics folks at the MIT would probably disagree. The extent to which dynamic systems explains outcomes of fluctuating forces in the economy is certainly useful. That said, SD has a communication problem: even if models can explain system behaviour and pinpoint required corrective action, people have difficulty internalizing these. Humans are not very good at applying differential equations to their everyday lives. So maybe this is why the field can be said not to have "lead to convincing new insights" in economics?