Book contents
- Frontmatter
- Contents
- Figures
- Tables
- Preface
- Acknowledgements
- Part I The State of Knowledge and its use in Environmental Economics
- Part II A Positive Theory for Complexity Economics
- 5 Concepts of Complexity for Economics
- 6 Fundamental Uncertainty
- 7 Micro-foundations for Consumer Theory
- 8 Micro-foundations for an Economic Theory of Innovation
- 9 Empirical Foundations for the Nature of Money
- 10 Micro-foundations for Credit Creation and the Business Cycle
- 11 A Macroeconomic Model for Growth and Creative Destruction
- Part III Applied Complexity Economics for Environmental Governance
- References
- Index
5 - Concepts of Complexity for Economics
from Part II - A Positive Theory for Complexity Economics
Published online by Cambridge University Press: 03 November 2022
- Frontmatter
- Contents
- Figures
- Tables
- Preface
- Acknowledgements
- Part I The State of Knowledge and its use in Environmental Economics
- Part II A Positive Theory for Complexity Economics
- 5 Concepts of Complexity for Economics
- 6 Fundamental Uncertainty
- 7 Micro-foundations for Consumer Theory
- 8 Micro-foundations for an Economic Theory of Innovation
- 9 Empirical Foundations for the Nature of Money
- 10 Micro-foundations for Credit Creation and the Business Cycle
- 11 A Macroeconomic Model for Growth and Creative Destruction
- Part III Applied Complexity Economics for Environmental Governance
- References
- Index
Summary
In this chapter, a number of key concepts from complexity science are introduced in order to provide the tools, method and philosophy of science necessary for later chapters. Focus is given to concepts needed in a complexity and network theory of money, finance, innovation and macroeconomics. In particular, the notions of emergence, interactions, non-linearity and path-dependence are explored, and their relationship with equilibrium, non-ergodicity, stability and chaos, and the theory of evolution. A simple classification of complex systems is given. The particular case of self-organised criticality is explored as it becomes later used as a basis to explain complex dynamics and fluctuations in innovation networks and the financial system.
- Type
- Chapter
- Information
- Complexity Economics for Environmental Governance , pp. 103 - 131Publisher: Cambridge University PressPrint publication year: 2022