IDEAS home Printed from https://ideas.repec.org/a/eee/jeborg/v205y2023icp638-647.html
   My bibliography  Save this article

Economics in nouns and verbs

Author

Listed:
  • Arthur, W. Brian

Abstract

Standard economic theory uses mathematics as its main means of understanding, and this brings clarity of reasoning and logical power. But there is a drawback: algebraic mathematics restricts economic modeling to what can be expressed only in quantitative nouns, and this forces theory to leave out matters to do with process, formation, adjustment, and creation—matters to do with nonequilibrium. For these we need a different means of understanding, one that allows verbs as well as nouns. Algorithmic expression is such a means. It allows verbs—processes—as well as nouns—objects and quantities. It allows fuller description in economics, and can include heterogeneity of agents, actions as well as objects, and realistic models of behavior in ill-defined situations. The world that algorithms reveal is action-based as well as object-based, organic, possibly ever-changing, and not fully knowable. But it is strangely and wonderfully alive.

Suggested Citation

  • Arthur, W. Brian, 2023. "Economics in nouns and verbs," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 638-647.
    • Handle: RePEc:eee:jeborg:v:205:y:2023:i:c:p:638-647
    DOI: 10.1016/j.jebo.2022.10.036
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167268122003936
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jebo.2022.10.036?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Farmer, J. Doyne & Axtell, Robert L., 2022. "Agent-Based Modeling in Economics and Finance: Past, Present, and Future," INET Oxford Working Papers 2022-10, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.
    2. Wagner, Alfred, 1891. "Marshall's Principles of Economics," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 5, pages 319-338.
    3. Arthur, W. Brian, 2007. "The structure of invention," Research Policy, Elsevier, vol. 36(2), pages 274-287, March.
    4. Alvin E. Roth, 2002. "The Economist as Engineer: Game Theory, Experimentation, and Computation as Tools for Design Economics," Econometrica, Econometric Society, vol. 70(4), pages 1341-1378, July.
    5. Magda Fontana, 2006. "Computer simulations, mathematics and economics," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 53(1), pages 96-123, March.
    6. Paul M. Romer, 2015. "Mathiness in the Theory of Economic Growth," American Economic Review, American Economic Association, vol. 105(5), pages 89-93, May.
    7. Deirdre McCloskey, 2005. "The Trouble with Mathematics and Statistics in Economics," History of Economic Ideas, Fabrizio Serra Editore, Pisa - Roma, vol. 13(3), pages 85-102.
    8. Boettke, Peter & Coyne, Christopher (ed.), 2015. "The Oxford Handbook of Austrian Economics," OUP Catalogue, Oxford University Press, number 9780199811762.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Félix-Fernando Muñoz, 2024. "The coevolution of technology, markets, and culture: the challenging case of AI," Review of Evolutionary Political Economy, Springer, vol. 5(3), pages 511-533, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. W. Brian Arthur, 2021. "Economics in Nouns and Verbs," Papers 2104.01868, arXiv.org, revised Apr 2021.
    2. Darcy W E Allen, 2020. "When Entrepreneurs Meet:The Collective Governance of New Ideas," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number q0269, August.
    3. Moreno-Casas, Vicente & Espinosa, Victor I. & Wang, William Hongsong, 2022. "The political economy of complexity: The case of cyber-communism," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 566-580.
    4. Anna Alexandrova & Daniel M. Haybron, 2011. "High-Fidelity Economics," Chapters, in: John B. Davis & D. Wade Hands (ed.), The Elgar Companion to Recent Economic Methodology, chapter 5, Edward Elgar Publishing.
    5. Yariv, Leeat & Jackson, Matthew O., 2018. "The Non-Existence of Representative Agents," CEPR Discussion Papers 13397, C.E.P.R. Discussion Papers.
    6. SAITO Yukiko, 2013. "Role of Hub Firms in Geographical Transaction Network," Discussion papers 13080, Research Institute of Economy, Trade and Industry (RIETI).
    7. Alvin E. Roth & Tayfun Sönmez & M. Utku Ünver, 2004. "Kidney Exchange," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(2), pages 457-488.
    8. Emanuela Marrocu & Raffaele Paci & Stefano Usai, 2013. "Productivity Growth In The Old And New Europe: The Role Of Agglomeration Externalities," Journal of Regional Science, Wiley Blackwell, vol. 53(3), pages 418-442, August.
    9. Muriel Niederle & Alvin E. Roth, 2009. "The Effects of a Centralized Clearinghouse on Job Placement, Wages, and Hiring Practices," NBER Chapters, in: Studies of Labor Market Intermediation, pages 235-271, National Bureau of Economic Research, Inc.
    10. Erlanson, Albin & Szwagrzak, Karol, 2013. "Strategy-Proof Package Assignment," Working Papers 2013:43, Lund University, Department of Economics.
    11. Su, Hsin-Ning & Moaniba, Igam M., 2017. "Investigating the dynamics of interdisciplinary evolution in technology developments," Technological Forecasting and Social Change, Elsevier, vol. 122(C), pages 12-23.
    12. Kristien Werck & Bruno Heyndels & Benny Geys, 2008. "The impact of ‘central places’ on spatial spending patterns: evidence from Flemish local government cultural expenditures," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 32(1), pages 35-58, March.
    13. Davide Consoli & Pier Paolo Patrucco, 2011. "Complexity and the Coordination of Technological Knowledge: The Case of Innovation Platforms," Chapters, in: Handbook on the Economic Complexity of Technological Change, chapter 8 Edward Elgar Publishing.
    14. Giulia Faggio & Olmo Silva & William C Strange, 2020. "Tales of the city: what do agglomeration cases tell us about agglomeration in general? [The anchor tenant hypothesis: exploring the role of large, local, R&D-intensive firms in regional innovation ," Journal of Economic Geography, Oxford University Press, vol. 20(5), pages 1117-1143.
    15. Belokrylov, K. & Kivarina, M. & Myasnikov, A. & Ogurtsova, E., 2019. "The Role of Mathematics in Teaching Undergraduate Economics: Students' Opinions and Recommendations," Journal of the New Economic Association, New Economic Association, vol. 43(3), pages 116-150.
    16. Paola Tubaro, 2009. "Is individual rationality essential to market price formation? The contribution of zero-intelligence agent trading models," Journal of Economic Methodology, Taylor & Francis Journals, vol. 16(1), pages 1-19.
    17. Chao Huang, 2021. "Stable matching: an integer programming approach," Papers 2103.03418, arXiv.org, revised Apr 2022.
    18. H. W. Arndt, 1984. "Political Economy," The Economic Record, The Economic Society of Australia, vol. 60(3), pages 266-273, September.
    19. Singh, Anuraag & Triulzi, Giorgio & Magee, Christopher L., 2021. "Technological improvement rate predictions for all technologies: Use of patent data and an extended domain description," Research Policy, Elsevier, vol. 50(9).
    20. Amel Attour & Pierre Barbaroux, 2015. "Le rôle des processus de connaissances dans le cycle de vie d'un écosystème d'affaires," Post-Print halshs-01244401, HAL.

    More about this item

    Keywords

    Economic theory; Mathematics in economics; Algorithms; Complexity economics; Computational economics;
    All these keywords.

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • B59 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Other
    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jeborg:v:205:y:2023:i:c:p:638-647. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jebo .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.