Analyzing Market Economies From the Perspective of Information Production, Policy, and Self-organized Equilibrium

Dominique, C-Rene (2016): Analyzing Market Economies From the Perspective of Information Production, Policy, and Self-organized Equilibrium. Published in: Expert Journal of Economics , Vol. 4, No. (1) (4 April 2016): pp. 14-23.

Abstract

A modern market economy is an exceedingly complex, infinite-dimensional, stochastic dynamical system. The failure of mainstream economists to characterize its dynamics may well be due to its intractability. This paper argues that the characterization of its dynamics becomes almost trivial when it is analyzed from the perspective of information production. Whether its Jacobian matrix is specifiable or not, a Lyapunov spectrum can be constructed from which the potential Kolmogorov-Sinai or Shannon entropy can be assessed. But, a self-organized equilibrium must first obtain, and for that a suitable policy must be operational.

• Item Type: MPRA Paper
• Language: English
• Keywords: Complexity, Kolmogorov-Sinai entropy, Shannon entropy, Lyapunov spectrum, Lyapunov dimension, Efficient policy, Self-organized equilibrium.
• Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B4 - Economic Methodology; B - History of Economic Thought, Methodology, and Heterodox Approaches > B4 - Economic Methodology > B41 - Economic Methodology; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis

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