A Macro Economy as an Emergent Ecology of Plans

44 Pages Posted: 4 Nov 2010 Last revised: 19 Sep 2011

See all articles by Richard E. Wagner

Richard E. Wagner

George Mason University - Department of Economics; George Mason University - Mercatus Center

Date Written: November 3, 2010

Abstract

Standard macro theories reflect a choice-theoretic orientation wherein aggregate variables are treated as acting directly on one another. Macro phenomena are thus reduced to the same order of simplicity as micro phenomena; macro variables differ from micro variables only by their larger size. In contrast, this paper treats the relationship between micro and macro as non-scalable. Macro phenomena emerge through micro interaction and are of a higher order of complexity than micro phenomena. Rather than reducing macro to micro through scalar multiplication, macro phenomena supervene on micro interaction and are not themselves objects of direct action. A macro economy is treated as a complex ecology of plans that constitute a non-equilibrium process of spontaneous ordering.

Keywords: micro foundations, complexity; emergence, supervention, ecology of plans, turbulence, spontaneous ordering, scale-free modeling

JEL Classification: B4, D2, D8, E1

Suggested Citation

Wagner, Richard E., A Macro Economy as an Emergent Ecology of Plans (November 3, 2010). GMU Working Paper in Economics No. 10-33, Journal of Economic Behavior and Organization, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1702667

Richard E. Wagner (Contact Author)

George Mason University - Department of Economics ( email )

4400 University Drive
334 Enterprise Hall
Fairfax, VA 22030
United States
(703) 993-1132 (Phone)

HOME PAGE: http://mason.gmu.edu/~rwagner/

George Mason University - Mercatus Center ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

HOME PAGE: http://ppe.mercatus.org/scholars/richard-wagner

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
189
Abstract Views
2,087
Rank
289,210
PlumX Metrics