Computability and Algorithmic Complexity in Economics

This is an outline of the origins and development of the way computability theory and algorithmic complexity theory were incorporated into economic and finance theories. We try to place, in the context of the development of computable economics, some of the classics of the subject as well as those that have, from time to time, been credited with having contributed to the advancement of the field. Speculative thoughts on where the frontiers of computable economics are, and how to move towards them, conclude the paper. In a precise sense - both historically and analytically - it would not be an exaggeration to claim that both the origins of computable economics and its frontiers are defined by two classics, both by Banach and Mazur: that one page masterpiece by Banach and Mazur ([5]), built on the foundations of Turing’s own classic, and the unpublished Mazur conjecture of 1928, and its unpublished proof by Banach ([38], ch. 6 & [68], ch. 1, #6). For the undisputed original classic of computable economics is Rabinís effectivization of the Gale-Stewart game ([42];[16]); the frontiers, as I see them, are defined by recursive analysis and constructive mathematics, underpinning computability over the computable and constructive reals and providing computable foundations for the economist’s Marshallian penchant for curve-sketching ([9]; [19]; and, in general, the contents of Theoretical Computer Science, Vol. 219, Issue 1-2). The former work has its roots in the Banach-Mazur game (cf. [38], especially p.30), at least in one reading of it; the latter in ([5]), as well as other, earlier, contributions, not least by Brouwer.

Variations on the Theme of Conning in Mathematical Economics

The mathematization of economics is almost exclusively in terms of the mathematics of real analysis which, in turn, is founded on set theory (and the axiom of choice) and orthodox mathematical logic. In this paper I try to point out that this kind of mathematization is replete with economic infelicities. The attempt to extract these infelicities is in terms of three main examples: dynamics, policy and rational expectations and learning. The focus is on the role and reliance on standard xed point theorems in orthodox mathematical economics

Language as an instrument of thought

I show that there are good arguments and evidence to boot that support the language as an instrument of thought hypothesis. The underlying mechanisms of language, comprising of expressions structured hierarchically and recursively, provide a perspective (in the form of a conceptual structure) on the world, for it is only via language that certain perspectives are avail- able to us and to our thought processes. These mechanisms provide us with a uniquely human way of thinking and talking about the world that is different to the sort of thinking we share with other animals. If the primary function of language were communication then one would expect that the underlying mechanisms of language will be structured in a way that favours successful communication. I show that not only is this not the case, but that the underlying mechanisms of language are in fact structured in a way to maximise computational efficiency, even if it means causing communicative problems. Moreover, I discuss evidence from comparative, neuropatho- logical, developmental, and neuroscientific evidence that supports the claim that language is an instrument of thought

Roman roads: The hierarchical endosymbiosis of cognitive modules

Serial endosymbiosis theory provides a unifying paradigm for examining the interaction of cognitive modules at vastly different scales of biological, social, and cultural organization. A trivial but not unimportant model associates a dual information source with a broad class of cognitive processes, and punctuated phenomena akin to phase transitions in physical systems, and associated coevolutionary processes, emerge as consequences of the homology between information source uncertainty and free energy density. The dynamics, including patterns of punctuation similar to ecosystem resilience transitions, are large dominated by the availability of 'Roman roads' constituting channels for the transmission of information between modules