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Chaos and Complexity Economics (with J. Doyne Farmer)

EconTalk

CHAPTER

Rethinking Economic Models: Complexity vs. Simplicity

This chapter examines the gap between traditional economic models and the realities of the housing market, addressing the shortcomings of conventional modeling in predicting economic behaviors. It advocates for a complexity economics approach that incorporates dynamic changes and group behavior over simplistic equilibrium outcomes. The conversation also underscores the potential for innovative methodologies like agent-based modeling to enhance understanding and acceptance within the mainstream economic community.

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