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Economics and the social sciences are, in fact, the “hard” sciences, as Herbert Simon argued, because the complexity of the problems dealt with cannot simply be reduced to analytically solvable models or decomposed into separate subprocesses. Nevertheless, in recent years, the emerging interdisciplinary “sciences of complexity” have provided new methods and tools for tackling these problems, ranging from complex data analysis to sophisticated computer simulations. In particular, advanced methods developed in the natural sciences have recently also been applied to social and economic problems.The twenty-one chapters of this book reflect this modern development from various modeling perspectives (such as agent-based models, evolutionary game theory, reinforcement learning and neural network techniques, time series analysis, non-equilibrium macroscopic dynamics) and for a broad range of socio-economic applications (market dynamics, technological evolution, spatial dynamics and economic growth, decision processes, and agent societies). They jointly demonstrate a shift of perspective in economics and the social sciences that is allowing a new outlook in this field to emerge.
How ideas in complexity can be used to develop more effective public policy Complexity science—made possible by modern analytical and computational advances—is changing the way we think about social systems and social theory. Unfortunately, economists' policy models have not kept up and are stuck in either a market fundamentalist or government control narrative. While these standard narratives are useful in some cases, they are damaging in others, directing thinking away from creative, innovative policy solutions. Complexity and the Art of Public Policy outlines a new, more flexible policy narrative, which envisions society as a complex evolving system that is uncontrollable but can be influenced. David Colander and Roland Kupers describe how economists and society became locked into the current policy framework, and lay out fresh alternatives for framing policy questions. Offering original solutions to stubborn problems, the complexity narrative builds on broader philosophical traditions, such as those in the work of John Stuart Mill, to suggest initiatives that the authors call "activist laissez-faire" policies. Colander and Kupers develop innovative bottom-up solutions that, through new institutional structures such as for-benefit corporations, channel individuals’ social instincts into solving societal problems, making profits a tool for change rather than a goal. They argue that a central role for government in this complexity framework is to foster an ecostructure within which diverse forms of social entrepreneurship can emerge and blossom.
I think this is a very important book. Very few people in the social sciences write books on this topic and really do justice to complexity theory. Professor Room gives a very detailed, accurate and accessible review of complexity theory as it applies to social policy. His link with institutional theory is very appropriate and his discussion on the need for regulation (a link with complexity theory that many people would never reach) is really important and well grounded. It would be of interest to academics who really want to understand the implications of complexity theory for policy making in complex and fast-changing situations and to those undertaking advanced courses in politics, economics and sociology. - Jean Boulton, University of Cranfield, UK Graham Room argues that conventional approaches to the conceptualisation and measurement of social and economic change are unsatisfactory. As a result, researchers are ill-equipped to offer policy advice. This book offers a new analytical approach, combining complexity science and institutionalism. It also provides tools for policy makers in turbulent times. Part 1 is concerned with the conceptualisation of socio-economic change. It integrates complexity science and institutionalism into a coherent ontology of social and policy dynamics. Part 2 is concerned with models and measurement. It combines some of the principal approaches developed in complexity analysis with models and methods drawn from mainstream social and political science. Part 3 offers empirical applications to public policy: the dynamics of social exclusion; the social dimension of knowledge economies; the current financial and economic crisis. These are supplemented by a toolkit for the practice of agile policy making.
This book combines the human development approach and innovation economics in order to explore the effects that structural economic change has on human development. While economic diversification can provide valuable new social choices and capabilities, it also tends to lead to more complex decision processes and changes to the set of capabilities required by people to self-determine their future. Within this process of structural transformation, social networks are crucial for accessing information and social support, but networks can also be a root cause of exclusion and inequality reproduction. This implies the need to encourage innovation and economic diversification beyond production expansion, focusing on the promotion of human agency and social inclusion. This book provides such a modern perspective on development economics, emphasizing the role of social networks, economic diversity and entrepreneurship for social welfare. The author discusses how innovation, social networks, economic dynamics and human development are interlinked, and provides several practical examples of social and micro-entrepreneurship in contexts as diverse as Peruvian rural villages and Brazil’s urban areas. The interdisciplinary perspective put forward in this book illustrates theoretical and methodological methods of exploring the complexity of development in a practical and relevant way. It also provides useful information about structural factors which need to be considered by practitioners when designing pro-poor growth policies. Furthermore, the coverage of the core concepts of innovation, networks and development economics, enriched with multiple examples, makes it a valuable resource for scholars and advanced students of modern development economics.
With the recent developments in computing technologies and the thriving research scene in Complexity Science, economists and other social scientists have become aware of a more flexible and promising alternative for modelling socioeconomic systems; one that, in contrast with neoclassical economics, advocates for the realism of the assumptions, the importance of context and culture, the heterogeneity of agents (individuals or organizations), and the bounded rationality of individuals who behave and learn in multifaceted ways in uncertain environments. The book synthesizes an extensive body of work in the field of social complexity and constructs a unifying framework that allows developing concrete applications to important socioeconomic problems. This one-of-a-kind textbook provides a comprehensive panorama for advanced undergraduates and graduate students who want to become familiar with a wide range of issues related to social complexity. It is also a pioneering text that can support professors who wish to learn techniques and produce research in this novel field. Con los desarrollos recientes en las tecnologías de la computación y el floreciente dinamismo de las ciencias de la complejidad, economistas y otros científicos sociales tienen a su alcance una flexible y prometedora alternativa para la modelación de los sistemas socioeconómicos. Esta metodología, en contraste con la economía neoclásica, aboga por el realismo de los supuestos, la importancia del contexto y la cultura, la heterogeneidad de los agentes (individuos y organizaciones), y la racionalidad acotada de las personas que se comportan y aprenden de maneras muy diversas en entorno con incertidumbre. El libro sintetiza la extensa literatura que existe sobre la complejidad social, y construye un enfoque unificador que permite elaborar aplicaciones concretas con las que abordar importantes problemas socioeconómicos. Se trata de un texto singular dado que presenta un panorama comprensivo del campo de estudio, por lo que puede resultar de sumo interés para estudiante de licenciatura avanzados, y alumnos de posgrado que desean adentrarse en el tema. Asimismo, se trata de un texto pionero de gran utilidad para profesores y analistas interesados en aprender algunas de las técnicas del paradigma de la complejidad social para, de esta forma, aplicarlas en sus tareas de investigación.
. . . in my opinion. . . readers. . . should find in this book both several remarkable insights concerning basic statements of evolutionary theorising and concrete results that can be acquired by applying such basic statements in computer simulation models and in various fields of analysis. Mauro Lombardi, The Journal of Artificial Societies and Social Simulation Complexity theory first emerged three decades or so ago, but only recently has its potential relevance for the study of social and economic phenomena really begun to be recognised. This timely collection of essays clearly demonstrates, both conceptually and empirically, how complexity theory ideas can provide considerable insight into how socio-economic systems cities, societies, industries, technologies and economies evolve and adapt over time. It is essential reading for anyone interested in how order and evolution emerge out of the seemingly chaotic socio-economic world around us. Ron Martin, University of Cambridge, UK I read Complexity and Co-Evolution with real pleasure. These authors have done the near impossible they have made the concepts of a new and evolving science accessible to people who can apply it in practical ways. The clarity of writing reflects the sort of confidence only the truly informed can muster, for they need no jargon to cover confusions. Their mastery allows them to present the essentials in simple, unadorned forms and through genuinely illustrative examples. Any manager or director trying to navigate dynamic markets can use this book to learn new ways of thinking, explore new possibilities, and study historical experiences. Robert Artigiani, United States Naval Academy Current thinking about evolutionary dynamics increasingly relies on co-evolution, and co-evolution increasingly implies complex dynamics of one sort or another. This volume brings together a capable and well-balanced group of thinkers on these topics who explore these deeply related concepts with up-to-date and advanced tools and concepts. For anyone wishing to learn about the latest developments in these rapidly developing areas, this book is highly recommended. J. Barkley Rosser Jr., James Madison University, US This book applies ideas and methods from the complexity perspective to key concerns in the social sciences, exploring co-evolutionary processes that have not yet been addressed in the technical or popular literature on complexity. Authorities in a variety of fields including evolutionary economics, innovation and regeneration studies, urban modelling and history re-evaluate their disciplines within this framework. The book explores the complex dynamic processes that give rise to socio-economic change over space and time, with reference to empirical cases including the emergence of knowledge-intensive industries and decline of mature regions, the operation of innovative networks and the evolution of localities and cities. Sustainability is a persistent theme and the practicability of intervention is examined in the light of these perspectives. Specialists in disciplines that include economics, evolutionary theory, innovation, industrial manufacturing, technology change, and archaeology will find much to interest them in this book. In addition, the strong interdisciplinary emphasis of the book will attract a non-specialist audience interested in keeping abreast of current theoretical and methodological approaches through evidence-based and practical examples.
The internationally-renowned contributors to this book examine the causes and consequences of complexity among the broadly economic phenomena of firms, industries and socio-economic policy. They make a valuable contribution to the increasingly prominent subject of complexity, especially for those whose interests include evolutionary, behavioral, political and social approaches to understanding economics and economic phenomena.
Maps capture data expressing the economic complexity of countries from Albania to Zimbabwe, offering current economic measures and as well as a guide to achieving prosperity Why do some countries grow and others do not? The authors of The Atlas of Economic Complexity offer readers an explanation based on "Economic Complexity," a measure of a society's productive knowledge. Prosperous societies are those that have the knowledge to make a larger variety of more complex products. The Atlas of Economic Complexity attempts to measure the amount of productive knowledge countries hold and how they can move to accumulate more of it by making more complex products. Through the graphical representation of the "Product Space," the authors are able to identify each country's "adjacent possible," or potential new products, making it easier to find paths to economic diversification and growth. In addition, they argue that a country's economic complexity and its position in the product space are better predictors of economic growth than many other well-known development indicators, including measures of competitiveness, governance, finance, and schooling. Using innovative visualizations, the book locates each country in the product space, provides complexity and growth potential rankings for 128 countries, and offers individual country pages with detailed information about a country's current capabilities and its diversification options. The maps and visualizations included in the Atlas can be used to find more viable paths to greater productive knowledge and prosperity.
A 'Non-Toxic' Intermediate Textbook 'Here, at last, we have the ideal textbook for microeconomics from an evolutionary and institutional perspective. Wolfram Elsner does nothing less than reconstruct the principles of microeconomics for a world of interactive business networks, change and innovation, crisis and uncertainty, as well as coordination problems and cooperative joint ventures. The publication of this book is a landmark event in microeconomics.' – Phillip A. O'Hara, Curtin University of Technology, Perth, Australia and President-Elect of AFEE, 2012 'This microeconomics textbook by Wolfram Elsner provides a timely alternative for understanding the micro roots of uncertainty, complexity and crisis. The evolutionary and institutional perspective sheds new light on contemporary issues such as clusters, networks, innovation and coordination. By reading this textbook, teachers, students and practitioners will open their minds to new economic thinking.' – Ping Chen, Peking University, Beijing, Fudan University, Shanghai, China and author of Economic Complexity and Equilibrium Illusion This thorough reconstruction of microeconomics 'post-2008' provides economic students with a new way of real-world understanding and strategic qualification that will be better appreciated by their future employers and any professional practice. It will prove essential for economic students and other social science programs at a graduate level. This accessible and engaging textbook includes: • A survey of the most famous core models of modern microeconomics including the neoclassical approach and its heterodox critiques – Sraffian, Institutionalist, Post-Keynesian and Mirowskian • An introduction to complexity thinking in economics • An introduction to game theory • An introduction to the methods of complex computer simulation • An introduction to strategic behavior • An newly integrated approach to real-world and complexity economics, rather than focusing on neoclassical ('perfect') market equilibrium 'plus a thousand recent extra things on top'. See the companion website – www.microeconomics.us – for teaching material, readings, exams and as a general guide to explore issues raised in the book.
Social Complexity and Complex Systems in Archaeology turns to complex systems thinking in search of a suitable framework to explore social complexity in Archaeology. Social complexity in archaeology is commonly related to properties of complex societies such as states, as opposed to so-called simple societies such as tribes or chiefdoms. These conceptualisations of complexity are ultimately rooted in Eurocentric perspectives with problematic implications for the field of archaeology. This book provides an in-depth conceptualisation of social complexity as the core concept in archaeological and interdisciplinary studies of the past, integrating approaches from complex systems thinking, archaeological theory, social practice theory, and sustainability and resilience science. The book covers a long-term perspective of social change and stability, tracing the full cycle of complexity trajectories, from emergence and development to collapse, regeneration and transformation of communities and societies. It offers a broad vision on social complexity as a core concept for the present and future development of archaeology. This book is intended to be a valuable resource for students and scholars in the field of archaeology and related disciplines such as history, anthropology, sociology, as well as the natural sciences studying human-environment interactions in the past.