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Complexity Modelling in Economics: the State of the Art

Bruna Bruno, Marisa Faggini, Anna Parziale

Abstract

The economic crisis happening across the world over the last few years describes a range of interdependencies and interactions,and has highlighted the fundamentalf laws of neoclassical economic theory: its unedifying focus on prediction and, above all, its inability to explain how the economy really works. As such, it is increasingly recognised that economic phenomena cannot be exclusively investigated as being derived from deterministic, predictable and mechanistic dynamics. Instead, a new approach is required by which history-dependence, organic and ever-evolving processes are also accounted for. As this view implies new challenges and opportunities for policy, we will focus our attention on innovative components of Complexity Theory for the study of economics and the evaluation of public policies.

Published on 27 Sep 2016 in Economic Thought Vol 5, No 2, 2016