Given the economy's complex behavior and sudden transitions as evidenced in the 2007–08 crisis, agent-based models are widely considered a promising alternative to current macroeconomic practice dominated by DSGE models. Their failure is commonly interpreted as a failure to incorporate...

Credit default swaps (CDS) which constitute up to 98% of credit derivatives have had a unique, endemic and pernicious role to play in the current financial crisis. However, there are few in depth empirical studies of the financial network interconnections among banks and between banks and...

In this paper we attempt an overview of the philosophical implications of complex systems thought, and investigate how this alternative viewpoint affects our attempts to design and utilise models for living systems. We classify the types of complex system that relate to self-organisation. The...

Although the literature on the evolution of industrial clusters is not vast, a preferred approach has already become evident, based around the idea of a cluster 'life-cycle'. This approach has several limitations. In this paper we explore a different conception of cluster evolution drawing on...

We propose a theory of innovation in services based upon the development of new markets that exploit the powers of ICT to coordinate service production and delivery. As digital communications and computational infrastructure have developed over the past few decades, the scale and scope of the...

The problem of designing, coordinating, and managing complex systems has been central to the management and organization literature. Recent writings have tended to offer modularity as at least a partial solution to this design problem. However, little attention has been paid to the problem of...

Convergence and synchronisation of business and growth cycles are important issues in the efficient formulation of euro area economic policies, and in particular European Central Bank (ECB) monetary policy. Although several studies in the economics literature address the issue of synchronicity...

Understanding the complex dynamics of social-ecological systems (SES) is difficult because rigorous methodologies and methods for this purpose are lacking. Multi-scale (temporal and geographical) linkages and pathways can mask feedbacks. Thus, understanding SES requires multi-dimensional...

In the wake of the worst financial crisis since 1929, economists are revisiting the received understanding of how financial markets and institutions actually operate. This paper aims to contribute to this reexamination. It builds upon the traditional and widely-accepted mean-variance approach to...

The use of multi-criteria evaluation tools in combination with participatory approaches provides a promising framework for integrating multiple interests and perspectives in the effort to provide sustainability. However, the inclusion of diverse viewpoints requires the “compression” of...