Stefano Zambelli & Donald A. R. George 
Nonlinearity, Complexity and Randomness in Economics 
Towards Algorithmic Foundations for Economics

Nonlinearity, Complexity and Randomness in Economics
presents a variety of papers by leading economists, scientists, and
philosophers who focus on different aspects of nonlinearity,
complexity and randomness, and their implications for economics. A
theme of the book is that economics should be based on algorithmic,
computable mathematical foundations.



* Features an interdisciplinary collection of papers by
economists, scientists, and philosophers

* Presents new approaches to macroeconomic modelling, agent-based
modelling, financial markets, and emergent complexity

* Reveals how economics today must be based on algorithmic,
computable mathematical foundations

Table of Content

Notes on Contributors vii

1. Introduction 1

Stefano Zambelli

2. Towards an Algorithmic Revolution in Economic Theory
7

K. Vela Velupillai

3. An Algorithmic Information-Theoretic Approach to the
Behaviour of Financial Markets 37

Hector Zenil and Jean-Paul Delahaye

4. Complexity and Randomness in Mathematics: Philosophical
Reflections on the Relevance for Economic Modelling 69

Sundar Sarukkai

5. Behavioural Complexity 85

Sami Al-Suwailem

6. Bounded Rationality and the Emergence of Simplicity Amidst
Complexity 111

Cassey Lee

7. Emergent Complexity in Agent-Based Computational Economics
131

Shu-Heng Chen and Shu G.Wang

8. Non-Linear Dynamics, Complexity and Randomness: Algorithmic
Foundations 151

K. Vela Velupillai

9. Stock-Flow Interactions, Disequilibrium Macroeconomics and
the Role of Economic Policy 173

Toichiro Asada, Carl Chiarella, Peter Flaschel, Tarik Mouakil,
Christian Proa~no and Willi Semmler

10. Equilibrium Versus Market Efficiency: Randomness versus
Complexity in Finance Markets 203

Joseph L. Mc Cauley

11. Flexible Accelerator Economic Systems as Coupled Oscillators
211

Stefano Zambelli

12. Shifting Sands: Non-Linearity, Complexity and Randomness in
Economics 237

Donald A.R. George

Index 241

About the author

Stefano Zambelli is Professor of Political Economy at the
Department of Economics, University of Trento, Italy. He is also a
founding member of the Algorithmic Social Sciences Research Unit
(ASSRU) at University of Trento.

Donald A.R. George is Senior Lecturer in Economics at the
University of Edinburgh. He has published extensively on the
economics of self-management, economic dynamics, and the economics
of product reliability, and is joint founding Editor of the
Journal of Economic Surveys.