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Institutional dynamics in an economy seen as a complex adaptive system

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  • Miguel Vazquez

Abstract

The primary objective of this paper is to study the role of institutions evolution assuming that economies are generally out of equilibrium. The focus is developing a logical framework that allows describing economies as complex adaptive systems. This will allow deducing the uncertainty inherent to the economy as a consequence of system characteristics (instead of assuming it as hypothesis). Thus, it will be possible to characterize adaptation from fundamental properties of the system. As institutions are mechanisms to facilitate adaptation, the paper will provide a fundamental description of the functioning and logic for institutions within complex adaptive systems.

Suggested Citation

  • Miguel Vazquez, 2018. "Institutional dynamics in an economy seen as a complex adaptive system," IEFE Working Papers 104, IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy.
    • Handle: RePEc:bcu:iefewp:iefewp104
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    File URL: https://repec.unibocconi.it/iefe/bcu/papers/iefewp104.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Complex adaptive systems; Institutional dynamics; Algorithmic rationality; Uncertainty;
    All these keywords.

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • B5 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches

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