Nonlinearity, Complexity and Randomness in Economics presents a variety of papers by leading economists, scientists, and philosophers who focus on different aspects of nonlinearity, complexity and randomness, and their implications for economics. A theme of the book is that economics should be based on algorithmic, computable mathematical foundations. * Features an interdisciplinary collection of papers by economists, scientists, and philosophers * Presents new approaches to macroeconomic modelling, agent-based modelling, financial markets, and emergent complexity * Reveals how economics today must be based on algorithmic, computable mathematical foundations
Notes on Contributors vii 1. Introduction 1 Stefano Zambelli 2. Towards an Algorithmic Revolution in Economic Theory 7 K. Vela Velupillai 3. An Algorithmic Information-Theoretic Approach to the Behaviour of Financial Markets 37 Hector Zenil and Jean-Paul Delahaye 4. Complexity and Randomness in Mathematics: Philosophical Reflections on the Relevance for Economic Modelling 69 Sundar Sarukkai 5. Behavioural Complexity 85 Sami Al-Suwailem 6. Bounded Rationality and the Emergence of Simplicity Amidst Complexity 111 Cassey Lee 7. Emergent Complexity in Agent-Based Computational Economics 131 Shu-Heng Chen and Shu G.Wang 8. Non-Linear Dynamics, Complexity and Randomness: Algorithmic Foundations 151 K. Vela Velupillai 9. Stock-Flow Interactions, Disequilibrium Macroeconomics and the Role of Economic Policy 173 Toichiro Asada, Carl Chiarella, Peter Flaschel, Tarik Mouakil, Christian Proa"no andWilli Semmler 10. Equilibrium Versus Market Efficiency: Randomness versus Complexity in Finance Markets 203 Joseph L. McCauley 11. Flexible Accelerator Economic Systems as Coupled Oscillators 211 Stefano Zambelli 12. Shifting Sands: Non-Linearity, Complexity and Randomness in Economics 237 Donald A.R. George Index 241
