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This paper shows that economic theory can be analyzed by means of system dynamics, an intuitive approach that makes it possible to represent graphically the feedback loops between the variables involved in the models. It models Adam Smith's view of growth, according to Robert Heilbroner's highly simplified interpretation, (developed in a more comprehensive and exhaustive way by his teacher, the German sociologist and economist Adolph Lowe) by proposing a computational system for the study of complex models. The paper does not intend to make an original contribution to economic modeling, but to show a tool that allows simulations based on the principles of system dynamics, using specialized software. This tool can be used in teaching to show alternative modeling options to the conventional ones. [ABSTRACT FROM AUTHOR]

This paper introduces an unpublished 1970 work written by the distinguished development economist Lauchlin Currie (1902-93) on Paul Rosenstein Rodan's famous 1944 essay on the "Big Push" which led to the debate on balanced and unbalanced growth in which Albert Hirschman (1915-2012) was an important contributor. Both Currie and Hirschman had been key economic advisers to the Colombian government and here their respective views on development planning are contrasted. In particular, it is shown how Currie's 1970 paper clarifies the theory that serves as the basis for Colombia's 1971-74 National Plan, which he designed and helped execute, and whose institutional innovations have had a lasting impact on Colombia's recent economic history. [ABSTRACT FROM AUTHOR]

This paper is a discussion of the creation of agent-based models from the exclusive perspective of monetary phenomena. These correspond to Schumpeter's monetary analysis in its ideal version. A set of general principles formalizes a population of agents interacting in a decentralized way on the sole basis of monetary phenomena. We make use of these principles, and the subsequent agent-based model is a dynamic, non-deterministic system, whose numerical simulations are able to mimic stylized facts in macroeconomics. Further extensions of the model make possible the expansion its descriptive power, and its use in economic research. [ABSTRACT FROM AUTHOR]

Macroeconomic modelling has been under intense scrutiny since the Great Financial Crisis, when serious shortcomings were exposed in the methodology used to understand the economy as a whole. Criticism has been levelled at the assumptions employed in the dominant models, particularly that economic agents are homogeneous and optimising and that the economy is equilibrating. This paper seeks to explore an interdisciplinary approach to macroeconomic modelling, with techniques drawn from other (natural and social) sciences. Specifically, it discusses agent-based modelling, which is used across a wide range of disciplines, as an example of such a technique. Agent-based models are complementary to existing approaches and are suited to answering macroeconomic questions where complexity, heterogeneity, networks, and heuristics play an important role. [ABSTRACT FROM AUTHOR]

This paper presents evidence that macroeconomic accounting models helped to anticipate the credit crisis and economic recession, whereas equilibrium models, ubiquitous in mainstream policy and research, did not. This study traces the intellectual pedigree of the accounting approach as an alternative to neo-classical economics, and the postwar rise and decline of flow-of-funds models in policy use. The paper includes contemporary case studies of both types of models, and considers why the accounting approach has remained outside mainstream economics. Finally, it provides constructive recommendations for revising financial stability evaluation methods, and advocates an 'accounting of economics'. [ABSTRACT FROM AUTHOR]

This paper reviews the current evidence on the incidence of the corporate tax from Harberger-type general equilibrium models, with special attention to the open economy. The analysis identifies the major drivers of the results from open-economy models and compares estimates from four major studies that have examined corporate tax incidence in an open economy. Adjusting estimates from the studies to reflect central empirical estimates of key elasticities suggests that capital bears the majority of the corporate tax burden. The paper also presents an alternative method, based on the new view of property tax incidence, for allocating the corporate tax burden that distinguishes between the global effects of corporate taxes and excise effects that vary among nations. [ABSTRACT FROM AUTHOR]

This paper offers a detailed presentation of the Skaperdas and Syropoulos model; one of the main models of the theory of conflict and state emergence. First, it describes the model's Nash equilibrium and the relevant effects of comparative analysis. And second, from a new interpretation of the equilibrium and comparisons with other similar models, the paper concludes that it constitutes the most general analytical framework in the subject, which can be understood as the foundations for a general theory of conflict and state emergence. [ABSTRACT FROM AUTHOR]

This paper contrasts the concept of a complex, adaptive agent with the idea of a programmed agent, and develops a new vision of agent learning and structure. The concept of the agent is analyzed through a consideration of internal models, practice, the concept of routine and its influence on the agent's behavior, and the importance of ex ante and ex post learning. Finally, it demonstrates how problem solving is subject to the restrictions of the agent, and describes the different ways to explore solutions space with three types of scanning: exhaustive, random and selective. [ABSTRACT FROM AUTHOR]

This paper present two basic ideas. The first one is that the model of rationality applied to fertility and the interaction between quantity and quality were not originally proposed by Becker, as many of those interested in the subject tend to believe; and even that if this relation could seem clear, it is not obvious. The second one is that from the beginning the analysis of fertility has considered the institutional context. Criticism of Becker's model and more recent work strengthen the importance of institutional analysis for the study of the rationality of families in decisions on the number of children. [ABSTRACT FROM AUTHOR]

This document explores various information theoretical concepts initially developed in physics and engineering and used today in many other fields. Information is defined as a quantity inversely proportional to the probability that an event happens and entropy is defined as the expected value of information. Some information applications in economics include Theil's inequality index, Akaike's information criterion, and the maximum entropy estimation method. Also, information theoretical concepts have been applied to the statistical analysis of financial data. This paper includes an empirical illustration relating to stock market price forecasting. [ABSTRACT FROM AUTHOR]

Polarization seems to be a more accurate concept for the explanation of the emergence of social conflicts than that of inequality. This paper succinctly presents both concepts and summarizes the theory and index of economic polarization developed by Esteban and Ray within its identification-alienation framework and some of its extensions such as the group and explained polarization. [ABSTRACT FROM AUTHOR]

Recently a new approach to political economy has been consolidated. The political analysis of transaction costs is an attempt to solve some of the problems which arise in economic theories of public policy. This paper deals with the notions of transaction costs, institutional efficiency, governance structures and commitment value; and defines political interchange as political contracts. Political transactions have high transaction costs and the efficiency of the "political market" requires a democratic system with institutions that favour reasoned decisions and prevents democratic delegation from becoming abdication. This article surveys literature with a transaction cost perspective and shows that it has been very useful for the theoretical explanation of the role of political agents and the evolution of rules that guide their interaction. The main challenge is to provide empirical evidence to the theoretical proposals. [ABSTRACT FROM AUTHOR]