Emails in economics

 

Hypothetical case

I am a microeconomics professor in the university, one day a student sends me an email ask me if I can help with a topic for a final presentation in a introductory course.

She asks me that if I can explain about complexity economics, and the importance of this.

 

Email for the student.

Good morning.

According to your question, I can talk about a few important points that can help you.

First is important mention that complexity economics was created to relax certain merely neoclassical assumptions about the economy and economic agents, it seeks to stop seeing models where individuals are always rational, and in which systems are well defined.

In other words, it tries as far as possible to make models much more realistic and applicable.

It developed mainly from the criticisms of various authors who highlighted that the economic and mathematical models used applied to very controlled conditions, which is far from the economic world. It is thus then that the economy is highlighted as a complex system, which is why many times one cannot speak of equilibria in the model, this has led it to be criticized by more conservative authors as well.

What this field of study mentions is that agents often must make decisions in situations that are poorly defined where the principle of rationality is not so applicable.

Another point is that the economics of complexity highlights that very simple models are often proposed for very complex phenomena, with which leaving very relevant aspects out of these can occur, which distorts its applicability.

In my opinion, this new economic vision comes to give a little more reality to both economic theory and the mathematical use within it, although it is complex to analyze since it breaks many of the most basic assumptions in economics, but it really is an area that can be further developed soon.

I consider this to be a most relevant introduction. If you have any other concerns, please do not hesitate to write to me.

Carlos Gamboa Ceciliano

Advanced Microeconomics Professor