Category Archives: Complexity economics

Complexity, Innovation, and Development: Schumpeter Revisited

The role of innovation and entrepreneurship is increasingly getting policy attention in emerging countries. A growing body of literature is deriving its inspiration from the work of Joseph Schumpeter. His seminal 1911 book, The Theory of Economic Development, outlined a … Continue reading

Posted in Complexity, Complexity & change, Complexity economics, Development, Innovation, Schumpeter | Tagged , , , , ,

On the Evolution of Complexity

We often take for granted that systems evolving over time tend to become more complicated. When this paper was written, little was understood about what mechanisms might cause evolution to favor increases in complication. This paper proposes three means by … Continue reading

Posted in Complexity, Complexity economics, Evolution | Tagged , ,

Process and Emergence in the Economy

It should be clear by now that exclusively posing economic problems as multiagent optimization exercises makes little sense from the viewpoint we are outlining—a viewpoint that puts emphasis on process, not just outcome. In particular, it asks how new “things” … Continue reading

Posted in Complexity economics, Economy, Emergence, Process | Tagged , , ,

The Complexity Era in Economics

This article argues that the neoclassical era in economics has ended and is being replaced by a new era. What best characterizes the new era is its acceptance that the economy is complex, and thus that it might be called … Continue reading

Posted in Complexity, Complexity economics, Economy | Tagged , ,

Complexity Economics: A Different Framework for Economic Thought

This paper provides a logical framework for complexity economics. Complexity economics builds from the proposition that the economy is not necessarily in equilibrium: economic agents (firms, consumers, investors) constantly change their actions and strategies in response to the outcome they … Continue reading

Posted in Complexity, Complexity economics, Economic thought, Economy | Tagged , , ,

Complexity and the Economy

Economics is currently undergoing its most profound change since the 1800s. Instead of seeing the economy as a perfectly ordered, rational system, economists are beginning to see it as an ecology of actions, forecasts, strategies, and technologies that are always … Continue reading

Posted in Complexity, Complexity economics, Economy | Tagged , ,