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Economics And Complexity

Author

Listed:
  • ALAN KIRMAN

    (CGREQAM, EHESS, Universite d'Aix Marseille, 2 Rue de la Charite, 13002 Marseille, France)

Abstract

This paper presents a view of the economy as a complex system with heterogeneous interacting agents who collectively organize themselves to generate aggregate phenomena which cannot be regarded as the behavior of some average or representative individual. There is an essential difference between the aggregate and the individual and such phenomena as bubbles and crashes, herd behavior, the transmission of information and the organization of trade are better modeled in the sort of framework suggested here than in more standard economic models.

Suggested Citation

  • Alan Kirman, 2004. "Economics And Complexity," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 7(02), pages 139-155.
    • Handle: RePEc:wsi:acsxxx:v:07:y:2004:i:02:n:s0219525904000123
    DOI: 10.1142/S0219525904000123
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    References listed on IDEAS

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    1. repec:bla:jfinan:v:44:y:1989:i:3:p:719-29 is not listed on IDEAS
    2. Robert J. Shiller, 1989. "Comovements in Stock Prices and Comovements in Dividends," Journal of Finance, American Finance Association, vol. 44(3), pages 719-729, July.
    3. repec:bla:jfinan:v:44:y:1989:i:3:p:719-730 is not listed on IDEAS
    4. Giovanni Dosi, 2000. "Innovation, Organization and Economic Dynamics," Books, Edward Elgar Publishing, number 1248.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Jean-Sébastien Lenfant, 2011. "General equilibrium after Sonnenschein, Mantel and Debreu: Trends and perspectives [L'équilibre général depuis Sonnenschein, Mantel et Debreu : courants et perspectives]," Post-Print hal-01742978, HAL.
    2. J. Silvestre, & T. Araújo & M. St. Aubyn, 2016. "Economic growth and individual satisfaction in an agent-based economy," Working Papers Department of Economics 2016/19, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    3. Almas Heshmati & Flávio Lenz-Cesar, 2015. "Policy simulation of firms’ cooperation in innovation," Research Evaluation, Oxford University Press, vol. 24(3), pages 293-311.
    4. Tanya Araújo & Miguel St. Aubyn, 2008. "Education, Neighborhood Effects And Growth: An Agent-Based Model Approach," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 11(01), pages 99-117.
    5. Tanya Araújo & Rui Vilela Mendes, 2007. "Innovation Success and Structural Change: An Abstract Agent Based Study," Working Papers Department of Economics 2007/25, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    6. Tanya Araujo & R. Vilela Mendes, 2006. "Market-oriented innovation: When is it profitable? An abstract agent-based study," Working Papers Department of Economics 2006/31, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    7. João Silvestre & Tanya Araújo & Miguel St. Aubyn, 2019. "Individual Satisfaction and Economic Growth in an Agent-Based Economy," Computational Economics, Springer;Society for Computational Economics, vol. 54(3), pages 893-903, October.
    8. Heshmati, Almas & Lenz-Cesar, Flávio, 2013. "Determinants and Policy Simulation of Firms Cooperation in Innovation," IZA Discussion Papers 7487, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Aggregation; interaction; self-organization; herd behavior; rationality;
    All these keywords.

    JEL classification:

    • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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