A new algorithmic approach to entangled political economy: Insights from the simplest models of complexity

Philip Z. Maymin

Research output: Contribution to journalArticle

Abstract

Economic models based on simple rules can result in complex and unpredictable deterministic dynamics with emergent features similar to those of actual economies. I present several such models ranging from cellular automaton and register machines to quantum computation. The additional benefit of such models is displayed by extending them to model political entanglement to determine the impact of allowing majority redistributive voting. In general, the insights obtained from simulating the computations of simple rules can serve as an additional way to study economics, complementing equilibrium, literary, experimental, and empirical approaches. I culminate by presenting a minimal model of economic complexity that generates complex economic growth and diminishing poverty without any parameter fitting, and which, when modified to incorporate political entanglement, generates volatile stagnation and greater poverty.

Original languageEnglish (US)
Pages (from-to)213-236
Number of pages24
JournalAdvances in Austrian Economics
Volume18
DOIs
StatePublished - Jan 1 2014

Keywords

  • Algorithms
  • Complexity
  • Economy

ASJC Scopus subject areas

  • Economics and Econometrics

Fingerprint Dive into the research topics of 'A new algorithmic approach to entangled political economy: Insights from the simplest models of complexity'. Together they form a unique fingerprint.

  • Cite this