APPLYING NEXT GENERATION TOOLS, DATA, AND ECONOMIC COMPLEXITY IDEAS

LIPARI SUMMER SCHOOL: Typical properties of large random economies

11-09-2015
Location: 
Lipari, Italy

Dr. Matteo Marsili: 09:00 - 10:30

Abstract:

Our economies are complex and involve a large number of interdependent actors, such as firms, banks and consumers. An approach to account for systems of this type has been suggested by E.P. Wigner, when he was dealing with spectra of heavy atoms. His intuition was that, the collective properties of large complex systems might be well described by those of random systems with analogous statistics of interactions. We discuss this approach to the study of simple instances of General Equilibrium Theory, a theoretical framework advanced by economists to describe competitive economies. We show that this approach provides a quite rich description of the behaviour of economies and that some quantities exhibit a statistical behaviour that matches the one observed in empirical data.