To read the full version of this content please select one of the options below:

A New Algorithmic Approach to Entangled Political Economy: Insights from the Simplest Models of Complexity

Entangled Political Economy

ISBN: 978-1-78441-102-2

ISSN: 1529-2134

Publication date: 17 October 2014

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.

Keywords

Acknowledgements

Acknowledgments

The author is grateful for the comments and suggestions of Francisco Doria, Roger Koppl, J. Barkley Rosser, Jr., Richard Wagner, David Wolpert, an anonymous reviewer, and the participants at the 2012 Wirth Institute Workshop on Austrian Economics.

Citation

Maymin, P.Z. (2014), "A New Algorithmic Approach to Entangled Political Economy: Insights from the Simplest Models of Complexity", Entangled Political Economy (Advances in Austrian Economics, Vol. 18), Emerald Group Publishing Limited, Bingley, pp. 213-236. https://doi.org/10.1108/S1529-213420140000018010

Publisher

:

Emerald Group Publishing Limited

Copyright © 2014 Emerald Group Publishing Limited