Analyzing Market Economies from the Perspective of Information Production, Policy, and Self-Organized Equilibrium
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...
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| Format: | Article |
| Language: | English |
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Sprint Investify
2016-04-01
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| Series: | Expert Journal of Economics |
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| Online Access: | http://economics.expertjournals.com/23597704-403/ |
| Summary: | 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. However, a self-organized equilibrium must first obtain, and for that a suitable policy must be operational. |
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| ISSN: | 2359-7704 |