by J. Barkley Rosser Jr. (Author)
About the Author
John Barkley Rosser Jr. is a mathematical economist and Professor of Economics at James Madison University in Harrisonburg, Virginia, US. He is known for work in nonlinear economic dynamics, including applications in economics of catastrophe theory, chaos theory, and complexity theory. He joined the economics department at JMU in 1977, and was appointed Professor of Economics in 1988 and Kirby L. Cramer Jr. Professor Business Administration in 1996. He has published several books and over 200 journal articles, book chapters, and book reviews in a wide variety of sub-fields of economics. He served as Editor of the Journal of Economic Behavior and Organization from 2001–2010. In 2012 he became Founding Editor-in-Chief of the Review of Behavioral Economics. As of 2018, he is also Coeditor of the New Palgrave Dictionary of Economics, 4th edition.
About this Book
This book presents a survey of the aspects of economic complexity, with a focus on foundational, interdisciplinary ideas. The long-awaited follow up to his 2011 volume Complex Evolutionary Dynamics in Urban-Regional and Ecologic-Economic Systems: From Catastrophe to Chaos and Beyond, this volume draws together the threads of Rosser’s earlier work on complexity theory and its wide applications in economics and an expanded list of related disciplines.
The book begins with a full account of the broader categories of complexity in economics--dynamic, computational, hierarchical, and structural--before shifting to more detailed analysis. The next two chapters address problems associated with computational complexity, especially those of computability, and discuss the Godel Incompleteness Theorem with a focus on reflexivity. The middle chapters discuss the relationship between entropy, econophysics, evolution, and economic complexity, respectively, with applications in urban and regional dynamics, ecological economics, general equilibrium theory, as well as financial market dynamics. The final chapter works to bring together these themes into a broader framework and expose some of the limits concerning analysis of deeper foundational issues.
With applications in all disciplines characterized by interconnected nonlinear adaptive systems, this book is appropriate for graduate students, professors and practitioners in economics and related disciplines such as regional science, mathematics, physics, biology, environmental sciences, philosophy, and psychology.
Brief Contents
1 Logical and Philosophical Foundations of Complexity 1
1.1 Forms of Complexity 1
1.2 Foundations of Computational Complexity Economics 4
1.3 Epistemology and Computational Complexity 8
1.4 Foundations of Dynamic Complexity Economics 10
1.5 Dynamic Complexity and Knowledge 14
1.6 Knowledge and Ergodicity 17
1.7 Reflexivity and the Unification of Complexity Concepts 20
1.8 Further Observations 23
2 Foundations of Complex Behavioral Economics 25
2.1 Overview 25
2.2 Herbert Simon and Bounded Rationality 26
2.3 Imitation and the Instability of Markets 28
2.4 Hierarchical Complexity and the Question of Emergence 32
2.5 Bounded Rationality and Learning to Believe in Chaos 35
2.6 Behavioral Economics and Keynesian Uncertainty 37
2.7 Behavioral Economics and the Complexity of Institutional Evolution 39
2.8 The Discontinuity Debate in Evolutionary Theory 41
2.9 Institutions, Organizations, and the Locus of Economic Evolution 45
2.10 Emergence and Multi-Level Evolution 46
2.11 Old and New Institutional Economics from a Complex Evolutionary Perspective 50
2.12 Summing Up 50
3 The Complex Dynamics of Social Interactions 53
3.1 Introduction 53
3.2 Labor Returns in the Non-Observed Economy 55
3.3 Variables and Data Sources 61
3.4 Empirical Findings 64
3.5 Conclusions 67
4 Econophysics, Entropy, and Complexity 69
4.1 The Origins and Nature of Econophysics 69
4.2 The Role of the Pareto Distribution 70
4.3 The Role of Statistical Mechanics 71
4.4 Econochemistry and Econobiology 73
4.5 Econophysics and Entropy 73
4.6 Unity of the Core Entropy Concepts 75
4.7 Ontological Entropy and Econophysics as the Fundamental Limit to Growth 76
4.8 Ontological Entropy and the Energy View of Economic Value 77
4.9 Metaphorical Entropy and General Equilibrium Value 78
4.10 Entropy Between Econophysics and Sociophysics 79
4.11 Metaphorical Entropic Financial Modeling 80
4.12 More Metaphor, the Anti-Entropic Minsky Bubble Process 81
4.13 Modeling Wealth and Income Distribution Dynamics Using Statistical Mechanics 83
4.14 Crashing Bubbles and the Revenge of Metaphorical Entropy 86
5 Econophysics and Entropy in Dynamically Complex Urban/Regional Systems 89
5.1 Opening Observations 89
5.2 The Wilson Model 91
5.3 Variations on Entropic Spatial Distribution Models 93
5.4 Thermodynamically Sustainable Urban/Regional Systems 94
5.5 Anti-Entropic Processes in Urban/Regional Systems 96
5.6 Complexity, Entropy, and Self-Organization of Urban/Regional Systems 98
5.7 Further Observations 99
6 Complex Ecological-Economic Systems and Their Governance Issues 101
6.1 Introduction: Ostrom, Complexity, and Governance 101
6.2 Complex Fishery Dynamics 101
6.3 Complexity Problems of Optimal Rotation in Forests 105
6.4 Complexities of Climate-Economy Systems 111
6.5 Stability, Resilience, Complexity of Ecosystems Revisited and Policy 112
7 Complexity and the Future of Economics 117
7.1 The Evolution of Economics 117
7.2 More on the Nature of Complexity 119
7.3 What is Cutting Edge Complexity Work? 120
7.4 Changes in Research Methods 122
7.5 Cutting Edge Complexity Work and Modern Macroeconomics 123
7.6 Complexity Economics and the Debate over Heterodox Economics 124
7.7 Complexity Economics and Public Policy 128
7.8 The Paradox of Economics as a Complex Adaptive System 131
References 133
Author Index 163
Subject Index 171
Publisher : Springer; 1st ed. 2021 edition (May 22, 2021)
Language : English
Pages : 183
ISBN-10 : 3030706672
ISBN-13 : 978-3030706678
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