Computational methods and classical‐Marxian economics

Abstract

This article surveys computational approaches to classical-Marxian economics. These approaches include a range of techniques -such as numerical simulations, agent-based models, and Monte Carlo methods -and cover many areas within the classical-Marxian tradition. We focus on three major themes in classical-Marxian economics, namely price and value theory; inequality, exploitation, and classes; and technical change, profitability, growth and cycles. We show that computational methods are particularly well-suited to capture certain key elements of the vision of the classical-Marxian approach and can be fruitfully used to make significant progress in the study of classical-Marxian topics.

Statistical Equilibrium Methods in Analytical Political Economy

“…ABMs attempt to trace back collectively determined phenomena to specific behavioral rules that govern agents' actions and interactions. See Cogliano et al (2020) for a comprehensive survey on these methods in analytical political economy. While these approaches differ conceptually and operationally Drȃgulescu and Yakovenko (2000) is a good demonstration of their complementarity with statistical equilibrium models that make interactions explicit.…”

Analytical political economy: Complexity, growth, international trade

“…While agreeing with Scharfenaker (2022) and Cogliano et al. (2022) that there is a strong intellectual and methodological affinity between Analytical Political Economy and the models, tools, and concepts in complexity theory and computational economics, Brancaccio et al. (2022) develop a quantitative analysis of the literature on one particular strand of computational economics, namely ABMs.…”

“…Papers by Scharfenaker (2022), Cogliano et al. (2022), and Brancaccio et al. (2022) review recent developments in the literature on complexity theory and computational economics from the perspective of Analytical Political Economy.…”

“…Cogliano et al. (2022) also argue that in classical and Marxian political economy, macroeconomic phenomena and individual behaviour are linked in complex and bidirectional ways. While individual decisions matter, individual preferences and beliefs are influenced by social structures and social positions, and class is a relevant unit of analysis.…”

“…The two approaches highlight different aspects of economic systems and raise rather different questions, but they are both clearly aligned with the theoretical and methodological principles of classical political economy as they explicitly model the fluctuations in state variables (such as prices, profit rates, and wages), which arise from decentralised individual decisions that interact in complex non-additive ways within the institutions of capitalism. Cogliano et al (2022) also argue that in classical and Marxian political economy, macroeconomic phenomena and individual behaviour are linked in complex and bidirectional ways. While individual decisions matter, individual preferences and beliefs are influenced by social structures and social positions, and class is a relevant unit of analysis.…”