Sublime

The economy is thus comprised of evolving networks of interacting agents, institutions, and technologies—networks of networks. The macro- level patterns of the economy—growth, innovation, business cycles, market booms and busts, inequality, and carbon emissions—then emerge from these dynamic micro- and meso-level interactions. From the complexity e

New strategies, new things are coming and going and striving to survive and do well in a situation they mutually create. We can describe this algorithmically, but not easily by equations, not just because the situation is complicated to track but because new behaviors and categories of behavior are not easily captured by equations.

The economy is not a closed static equilibrium system; it is a system perpetually open to novel behavior, and complexity economics forces us to keep this in mind.

Two great problems in Economics Allocation in the Economy Quantities: General equilibrium, international trade, game-theory outcomes . . . Formation in the Economy Processes: Of econ development, discovering novel technologies, structural change, arrival of new institutions, temporary phenomena like bubbles, crashes . . . The former is mathematizab

It traditionally assumed that firms were independent, and so changes would be independent, and so their sizes and aggregate effects would be distributed normally.