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The problem of complexity in economics on the example of the agricultural sector

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  • Aleksander GRZELAK

    (University of Economics, Poznan, Poland)

Abstract

The main aim of the article is recognition of the issues of complexity in economics with the particular emphasis on agriculture, as well as indication of resulting implications for this sector. Complexity in economic theory is in general perceived from the perspective of external effects, while the problem may also have other connotations: as the so-called fallacy of composition, or the phenomenon of entropy. The problem of complexity indicates the need for further reflection on the holistic perception of economic processes. This is particularly evident in the case of agriculture, when the evaluation based mainly on microeconomic approach from the perspective of the effect/cost relationship loses sight of the environmental, social, and cultural context. Focus should also be put on the entropy approach, which takes into account the openness of socio-economic systems and the limitations of resources, including the environment. Both the operating practice of agriculture together with the institutional surrounding, and agricultural economics are more advanced in the area of solving the problems of complexity on the practical and theoretical grounds, but there are still many issues that require solutions, particularly quantification of externalities. The work is theoretical in nature and a heuristic approach was applied in the considerations.

Suggested Citation

  • Aleksander GRZELAK, 2015. "The problem of complexity in economics on the example of the agricultural sector," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 61(12), pages 577-586.
    • Handle: RePEc:caa:jnlage:v:61:y:2015:i:12:id:236-2014-agricecon
    DOI: 10.17221/236/2014-AGRICECON
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    References listed on IDEAS

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    1. Jan HRON & Tomas MACAK, 2013. "Synergistic effect in the management of agricultural production," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 59(11), pages 489-495.
    2. Pretty, J. N. & Brett, C. & Gee, D. & Hine, R. E. & Mason, C. F. & Morison, J. I. L. & Raven, H. & Rayment, M. D. & van der Bijl, G., 2000. "An assessment of the total external costs of UK agriculture," Agricultural Systems, Elsevier, vol. 65(2), pages 113-136, August.
    3. David Colander, 2018. "The Death Of Neoclassical Economics," Chapters, in: How Economics Should Be Done, chapter 5, pages 46-62, Edward Elgar Publishing.
    4. Tim Josling, 1993. "Protectionism in agriculture: Slow progress towards freer trade in agricultural products," Open Economies Review, Springer, vol. 4(2), pages 211-228, June.
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