Computable Economics

Velupillai, K. Vela

doi:10.1093/0198295278.001.0001

Cited by 99 publications

(43 citation statements)

References 83 publications

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“…These double threshold dynamics to govern the strength of response of the state to a unit input of control are not emphasized in the usual nonlinear control literature, much less the linear control literature. The effects of adaptive capacity resemble the effects of algorithmic complexity in modeling behavior of human agents in economics (Velupillai 2000): an agent is an effective adaptor when its algorithmic complexity is relatively high.…”

Section: Discussionmentioning

confidence: 99%

Adaptive Capacity and Traps

Carpenter¹,

Brock²

2008

E&S

387

260

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ABSTRACT. Adaptive capacity is the ability of a living system, such as a social-ecological system, to adjust responses to changing internal demands and external drivers. Although adaptive capacity is a frequent topic of study in the resilience literature, there are few formal models. This paper introduces such a model and uses it to explore adaptive capacity by contrast with the opposite condition, or traps. In a socialecological rigidity trap, strong self-reinforcing controls prevent the flexibility needed for adaptation. In the model, too much control erodes adaptive capacity and thereby increases the risk of catastrophic breakdown. In a social-ecological poverty trap, loose connections prevent the mobilization of ideas and resources to solve problems. In the model, too little control impedes the focus needed for adaptation. Fluctuations of internal demand or external shocks generate pulses of adaptive capacity, which may gain traction and pull the system out of the poverty trap. The model suggests some general properties of traps in social-ecological systems. It is general and flexible, so it can be used as a building block in more specific and detailed models of adaptive capacity for a particular region.

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Section: Discussionmentioning

confidence: 99%

Adaptive Capacity and Traps

Carpenter¹,

Brock²

2008

E&S

387

260

View full text Add to dashboard Cite

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“…Rosser (2003Rosser ( , 2006Rosser ( , 2008, Colander et al (2008) and Mirowski (2012) provided a very interesting discussion about the interdisciplinary dimension of complexity and its influences on economics. Although complexity is a slippery concept, there exists a specialized literature dedicated to "complexity science" in which a lot of different conceptualizations are proposed: hierarchical complexity (Simon, 1962), algorithmic complexity (Chaitin, 1987), stochastic complexity (Rissanen, 1989), dynamic complexity (Day, 1994), computational complexity (Albin and Foley, 1998;Velupillai, 2000), etc. As reported by Horgan (1997, p. 305), Llyod has identified more than 45 definitions of complexity.…”

Section: Econophysics and Complexitymentioning

confidence: 99%

Duality of knowledge, singularity of method

Schınckus

Akdere

2018

JABES

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Purpose How a micro-founded discipline such as economics could deal with the increasing global economic reality? This question has been asked frequently since the last economic crisis that appeared in 2008. In this challenging context, some commentators have turned their attention to a new area of knowledge coming from physics: econophysics which mainly focuses on a macro-analysis of economic systems. By showing that concepts used by econophysicists are consistent with an existing economic knowledge (developed by J.S. Mill), the purpose of this paper is to claim that an interdisciplinary perspective is possible between these two communities. Design/methodology/approach The authors propose a historical and conceptual analysis of the key concept of emergence to emphasize the potential bridge between econophysics and economics. Findings Six methodological arguments will be developed in order to show the existence of conceptual bridges as a necessary condition for the elaboration of a common language between economists and econophysics which would not be superfluous, in this challenging context, to clarify the growing complexity of economic phenomena. Originality/value Although the economics and econophysics study same the complex economic phenomena, very few collaborations exist between them. This paper paves a conceptual/methodological path for more collaboration between the two fields.

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“…14 Surprisingly, there has been very little discussions on bounded rationality within a computability framework. Exceptions include Velupillai (2000) and Vellupilai (2010). Both works advanced several important points.…”

Section: Bounded Rationality: Empirical and Theoretical Developmentsmentioning

confidence: 99%

Bounded Rationality and the Emergence of Simplicity Amidst Complexity

Lee

2012

Nonlinearity, Complexity and Randomness in Economics

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The purpose of this essay is to explore the relationship between the simple and the complex in economics by anchoring our analysis on bounded rationality. Much of the conventional literature focuses on 'un-bounded rationality' of the rationality-as-consistency variety. Theorizing of bounded rationality tends to assume that the problem to be solved is independent of the nature of bounded rationality. Following the insights from the works of Herbert Simon and contributions from outside economics, both bounded rationality and the environment are inextricably linked. The boundaries between bounded rationality and its environment can shift. The form in which bounded rationality is found depends on the complexity of the environment. Furthermore, if local interactions between bounded rational agents result in the formation of hierarchies -the complexity of the collective system will change. Whether this will occur depends on the nature of bounded rationality at the individual level. AbstractThe purpose of this essay to explore the relationships between the simple and the complex in economics by anchoring our analysis on bounded rationality. Much of the conventional literature focuses on "un-bounded rationality" of the rationality-as-consistency variety. Theorizing of bounded rationality tends to assume that the problem to be solved is independent of the nature of bounded rationality. Following the insights from the works of Herbert Simon and contributions from outside economics , both bounded rationality and the environment are inextricably linked. The boundaries between bounded rationality and its environment can shift. The form in which bounded rationality is found depends on the complexity of the environment. Furthermore, if local interactions between bounded-rational agents result in the formation of hierarchies -the complexity of the collective system will change. Whether this will occur depends on the nature of bounded rationality at the individual level.

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Computable Economics

Cited by 99 publications

References 83 publications

Adaptive Capacity and Traps

Adaptive Capacity and Traps

Duality of knowledge, singularity of method

Bounded Rationality and the Emergence of Simplicity Amidst Complexity

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