This handbook covers the historical developments and early concerns of complexity theorists and brings it into engagement with the world today. A vibrant alternative to orthodox economics, it is a crucial resource for scholars, researchers and economists in the disciplines of heterodox economics, economic theory, and econophysics.

Table of ContentsMore about the editorsList of contributorsPing Chen, Wolfram Elsner, Andreas Pyka: The Complexity of Complexity Economics – Historical Emergence, Interdisciplinarity, Contesting Perspectives, and Future Development. Introduction to the Handbook of Complexity Economics Part I: Basics and Methods in Complexity EconomicsI.1: BasicsChapter 1: Mauro Gallegati, Alan Kirman: Stairway to ComplexityChapter 2: K. Vela Velupillai: Aspects of Discrete and Continuous Complexity TheoriesChapter 3: César A. Hidalgo: Knowledge is Non-FungibleChapter 4: John B. Davis: What are Reflexive Economic Agents? Position-Adjustment, SLAM, and Self-OrganizationChapter 5: Pier Paolo Saviotti: Complexity, Coevolution, and the EconomyChapter 6: Ping Chen: Complexity Economics: History, Issues, and MethodsI.2: Methods Chapter 7: W. Brian W. Arthur: Some Thoughts on Agent-Based Modeling and the Role of Computation in Economics Chapter 8: James K. Galbraith: Economic Complexity in the Real World Chapter 9: Linyuan Lü, Shuqi Xu, Xu Na: Complexity Science in the Application of Big Data EconomicsChapter 10: Kristina Bogner, Matthias Müller, Johannes Dahlke, Bernd Ebersberger, Thomas Berger: Agent-Based Modelling and Machine Learning - A New Paradigm for Complexity Economics and Sustainability Transitions?Chapter 11: Roy Cerqueti, Matteo Cinelli, Giovanna Ferraro, Antonio Iovanella: The Resilience of a Complex Network: Methods and ApplicationsChapter 12: Karl Naumann-Woleske, Max Sina Knicker, Michael Benzaquen, Jean-Philippe Bouchaud: Exploration of the Parameter Space in Macroeconomic ModelsChapter 13: Gaël Giraud, Paul Valcke: Stock-Flow-Consistent Macroeconomic Dynamics in Continuous TimePart II: Domains and Major ChallengesII.1: DomainsChapter 14.1: Victor M. Yakovenko: Monetary Economics from econophysics perspective (reprint)Chapter 14.2: Victor M. Yakovenko: Statistical Physics Perspective on Economic InequalityChapter 15: Harry Bloch, Stan Metcalfe: Price Theory in a Complex and Evolving EconomyChapter 16: Roger A. McCain: Complexity and Productivity: The Task ApproachChapter 17: Ping Chen: From Economic Chaos to Viable Markets: The Biophysics Foundation of Smith’s Theory on the Division of Labor and Schumpeter’s Wave Theory of Business CyclesChapter 18: Petra Ahrweiler: The Evolution of InnovationChapter 19: Thomas Berger: Agriculture as a Social-Ecological SystemChapter 20: Leilei Shi, Bing-Hong Wang: Network Complexity and Financial Behavior – Volume Distribution over Price in Financial MarketChapter 21: Yinan N. Tang: Trading Psychology and Market Resilience: From Brownian Motion to Birth-Death Process in Financial DynamicsChapter 22: Hardy Hanappi: Complex World MoneyChapter 23: Éva Kuruczleki, Anita Pelle, Marcell Zoltán Végh: The European Union as a Complex System in Times of CrisisII.2: New ChallengesChapter 24: Dirk Helbing, Carina I. Hausladen: Socio-Economic Implications of the Digital RevolutionChapter 25: Marcello Nieddu, Marco Raberto, Silvano Cincotti: Agent-Based Macroeconomics of Climate and Digital TransformationsChapter 26: Matteo Coronese, Davide Luzzati: Economic Impacts of Natural Hazards and Complexity Science: A Critical ReviewChapter 27: Michael W. M. Roos: Climate Change From the Perspective of Complexity EconomicsChapter 28: Torsten Heinrich: Epidemics in Modern EconomiesChapter 29: Jing Chen, James K. Galbraith: A Biophysical Approach to Production TheoryChapter 30: Sheri M. Markose: Digital Foundations of Evolvable Genomic Intelligence and Human Proteanism: Complexity with Novelty Production beyond Bounded RationalityChapter 31: Dominik Hartmann, Flávio L. Pinheiro: Economic Complexity and Inequality at the National and Regional LevelPART III: Political Economy and Complexity PolicyIII.1: Complexity Political EconomyChapter 32: Hilton Root: An Agenda for Complex Systems Research in Political EconomyChapter 33: Manuel Scholz-Wäckerle: Planetary-Scale Computation, Political Economic Complexity and HegemonyChapter 34: Frank Beckenbach: Potential for Mutual Enrichment? – Confronting Marxian Economics and Complexity EconomicsIII.2: Complexity PolicyChapter 35: Fernanda Senra de Moura, Pete Barbrook-Johnson: Using Data-Driven Systems Mapping to Contextualise Complexity Economics InsightsChapter 36: Carlo Bottai, Martina Iori: The Knowledge Complexity of the European Metropolitan Areas: Selecting and Clustering Their Hidden FeaturesChapter 37: Giovanni Dosi, Marcelo C. Pereira, Andrea Roventini, Maria Enrica Virgillito: A Complexity View on the Future of Work. Meta-Modelling Exploration of the Multi-Sector K+ S Agent-Based Model

The complexity economics, based on physical algorithms and statistics to analyze economic mass data and time-series, provides an alternative paradigm to the overly-simplified mainstream rationality assumption-based Neoclassical approach for understanding macro growth, structural transformation, climate change, financial crises, trade wars and other real-world phenomena. This Handbook collects recent progresses and new insights by authors in this new discipline. I recommend the book to scholars who are interested in this new approach. Justin Yifu LinProfessor and Dean, Institute of New Structural Economics, Peking University, ChinaFormer Chief Economist, the World BankThe economic system is a supremely complex one. The traditional approach to understanding it has been to reduce complexities to simple rules and behaviors, abstracting many features of the real economy. However, thanks to the enormous increases in both the amount of data available and computing power, there is nowadays an alternative approach: the one proposed by complexity economics, a fast-growing field in economic analysis.The Handbook of Complexity Economics provides a thorough and updated vision of this very promising field and will surely encourage many scholars to deepen research in this area. Victor A. BekerProfessor of Economics, University of Belgrano and University of Buenos Aires, ArgentinaFormer Associate Editor of Journal of Behavior and OrganizationTimely and compact one-volume from a set of economists uniquely positioned to contribute about complexity. The result is an up-to-date, integrated, compelling, canonical guide-book on the contours and contents of an approach that is extremely remunerative for theory as well as actual practice in the 21st century economy. Older and younger generations now have a fresh meeting point from where to breathe new life into the most pressing intellectual and societal challenges of our age.Sandro MendonçaIscte Business School, PortugalFormer communications regulator