The Harvard-MIT complexity approach to development and Austrian economics: Similarities and policy implications

Moreno-Casas, Vicente

doi:10.1007/s11138-021-00565-6

Cited by 4 publications

(5 citation statements)

References 62 publications

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“…Researchers from MIT and Harvard University have developed a complexity approach to economic development, called "economic complexity" [14]. This perspective implicitly follows some characteristic elements of the complexity scientific paradigm that emerged in the second half of the twentieth century but focuses on a practical application to economic development [24].…”

Section: Economic Complexitymentioning

confidence: 99%

The Intrinsic Links of Economic Complexity with Sustainability Dimensions: A Systematic Review and Agenda for Future Research

Montiel-Hernández,

Pérez-Hernández,

Salazar-Hernández

2024

Sustainability

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What are the intrinsic connections between economic complexity and sustainability dimensions? To address this question, we have conducted the first Systematic Mapping Study of the literature related to the economic complexity theory, employing databases such as Scopus, Web of Science, and Semantic Scholar following the PRISMA statement complemented with a science mapping technique. Our endeavor has culminated in the compilation of 687 documents published between 2006 and 2022. The findings of this systematic review reveal a thematic and semantic network that interconnects economic complexity with the following dimensions of sustainability: (1) Economic, (2) Social and Human, (3) Environmental, (4) Political, and (5) Cultural. The results offer compelling evidence that research into economic complexity is actively striving to promote studies that are pertinent to the challenges articulated by the 2030 Agenda for Sustainable Development. Furthermore, we propose five avenues for shaping a future research agenda based on the emerging research trends detected through in-depth analysis. In conclusion, we affirm that economic complexity stands as a robust theory that aids in comprehending the multidimensional challenges arising from the pursuit of sustainable development.

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Section: Economic Complexitymentioning

confidence: 99%

The Intrinsic Links of Economic Complexity with Sustainability Dimensions: A Systematic Review and Agenda for Future Research

Montiel-Hernández,

Pérez-Hernández,

Salazar-Hernández

2024

Sustainability

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“…Indicators capturing complexity already exist. One of the main goals of the Harvard–MIT approach is to elaborate complexity indicators to measure development (Moreno‐Casas, 2021). Accordingly, Hausmann et al (2013) created the Economic Complexity Index, the Product Complexity Index, and the Complexity Outlook Index.…”

Section: The Unintended Convergence Of Economic Complexity and Dynami...mentioning

confidence: 99%

“…In recent years, some economists have elaborated a new approach to economic development from a complexity perspective (Hausmann et al, 2013). Moreno‐Casas (2021) has called this perspective ‘the Harvard–MIT approach’ and has compared it to Austrian economics theory, finding many similarities between them. This approach claims that the source of wealth lies in the accumulation of productive knowledge.…”

Section: The Unintended Convergence Of Economic Complexity and Dynami...mentioning

confidence: 99%

“…With that, Hayek even foreshadowed evolutionary‐complex recent works of figures such as Langton, Wolfram, Kaufmann, or Mirowski (Rosser Jr., 2012). In the same way, Austrian economics has also been contrasted with a recent complexity approach to economic development, the Harvard–MIT approach (Moreno‐Casas, 2021), discovering many similarities with this more applied perspective of complexity.…”

Section: Introductionmentioning

confidence: 99%

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Dynamic efficiency and economic complexity

Moreno-Casas

Bagus

2022

Economic Affairs

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This article deals with the link between complexity economics and the Austrian concept of dynamic efficiency. The conventional notion of efficiency used in economic science, regarded as static in this article, is rejected for being incompatible with complexity economics in epistemic terms. The concept of dynamic efficiency is thus presented as an alternative definition of efficiency, given its epistemic and theoretical similarities with complexity economics; more concretely, with Santa Fe complexity. Consequently, a direct, causal relationship between economic complexity and dynamic efficiency is highlighted. This relationship is confirmed in light of recent applications of both dynamic efficiency theory and complexity economics to the study of economic development. Finally, it is pointed out that economic complexity and dynamic efficiency can be combined to improve our understanding of the development process.

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“…There is a vast literature on the similarities between Austrian and complexity economics (Barbieri 2013;Koppl 2009;Barkley Rosser 2015;Moreno-Casas 2021;Moreno-Casas and Bagus 2022). Both currents are presented as an alternative to the Walrasian equilibrium paradigm in economics, and both portray the economy as an emergent process integrated by heterogeneous agents with bounded rationality interacting in a decentralized way (Arthur, Durlauf, and Lane 1997;Barkley Rosser 2015).…”

mentioning

confidence: 99%

The Austrian School and Mathematics: Reconsidering Methods in Light of Complexity Economics

Moreno-Casas¹

2023

QJAE

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This article reconsiders the Austrian school’s historical position regarding the role of mathematics in economics in light of complexity economics’ approach to this issue. It first shows the three typical objections to the traditional use of mathematics raised by Austrian economics. Secondly, it presents complexity economics’ critique of algebraic mathematics, which is employed in mainstream economics, and its proposal for using algorithmic mathematics and computation. Then, it analyzes the similarities between the Austrian and complexity economics positions and considers whether the alternative algorithmic method that complexity economics advocates is compatible with and valuable for Austrian economics. The article concludes that Austrian economics can use algorithmic mathematics to elaborate economic theory without contradicting its own methodology and that algorithmic models and simulations can in fact enlarge Austrian theories on the working and emergence of the market process.

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The Harvard-MIT complexity approach to development and Austrian economics: Similarities and policy implications

Cited by 4 publications

References 62 publications

The Intrinsic Links of Economic Complexity with Sustainability Dimensions: A Systematic Review and Agenda for Future Research

The Intrinsic Links of Economic Complexity with Sustainability Dimensions: A Systematic Review and Agenda for Future Research

Dynamic efficiency and economic complexity

The Austrian School and Mathematics: Reconsidering Methods in Light of Complexity Economics

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