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The Impossibility of an Effective Theory of Policy in a Complex Economy

  • K. Vela Velupillai
Part of the New Economic Windows book series (NEW)

Abstract

There is one main theme and correspondingly one formal result in this paper. On the basis of a general characterization of what is formally meant by a ‘complex economy’, underpinned by imaginative suggestions to this end in Foley (2003) and in Brock and Colander (2000; henceforth BC), it will be shown that an effective 1 theory of economic policy is impossible for such an economy. There is, in addition, also a half-baked conjecture; it will be suggested, seemingly paradoxically, that a ‘complex economy’ can be formally based on the foundations of orthodox general equilibrium theory and, hence, a similar impossibility result is valid in this case, too.

Keywords

Turing Machine Effective Theory Complexity Vision Recursion Theory Universal Computation 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Italia 2007

Authors and Affiliations

  • K. Vela Velupillai
    • 1
    • 2
  1. 1.National University of IrelandIreland
  2. 2.Department of EconomicsUniversity of TrentoTrento

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