Nonlinearity, Complexity and Randomness in Economics

Nonlinearity, Complexity and Randomness in Economicspresents a variety of papers by leading economists, scientists, andphilosophers who focus on different aspects of nonlinearity,complexity and randomness, and their implications for economics. Atheme of the book is that economics should be based on algorithmic,computable mathematical foundations.* Features an interdisciplinary collection of papers byeconomists, scientists, and philosophers* Presents new approaches to macroeconomic modelling, agent-basedmodelling, financial markets, and emergent complexity* Reveals how economics today must be based on algorithmic,computable mathematical foundations

Notes on Contributors vii1. Introduction 1Stefano Zambelli2. Towards an Algorithmic Revolution in Economic Theory7K. Vela Velupillai3. An Algorithmic Information-Theoretic Approach to theBehaviour of Financial Markets 37Hector Zenil and Jean-Paul Delahaye4. Complexity and Randomness in Mathematics: PhilosophicalReflections on the Relevance for Economic Modelling 69Sundar Sarukkai5. Behavioural Complexity 85Sami Al-Suwailem6. Bounded Rationality and the Emergence of Simplicity AmidstComplexity 111Cassey Lee7. Emergent Complexity in Agent-Based Computational Economics131Shu-Heng Chen and Shu G.Wang8. Non-Linear Dynamics, Complexity and Randomness: AlgorithmicFoundations 151K. Vela Velupillai9. Stock-Flow Interactions, Disequilibrium Macroeconomics andthe Role of Economic Policy 173Toichiro Asada, Carl Chiarella, Peter Flaschel, Tarik Mouakil,Christian Proa~no andWilli Semmler10. Equilibrium Versus Market Efficiency: Randomness versusComplexity in Finance Markets 203Joseph L. McCauley11. Flexible Accelerator Economic Systems as Coupled Oscillators211Stefano Zambelli12. Shifting Sands: Non-Linearity, Complexity and Randomness inEconomics 237Donald A.R. GeorgeIndex 241