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Theme : feedback_loops
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Complexity in Economic and Financial Markets (pdf)
Really good Santa Fe paper from 1995. Key points:
- one way to view the economy is in psychological terms: as a collection of beliefs, anticipations, expectations, and interpretations which then affect decision
- When our decisions depend on others' decisions, only inductive reasoning rather deductive reasoning can possibly work
- in these situations beliefs create behaviours + behaviours create beliefs
from : duncanoleary
3rd August 2007
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The Inter-related Dynamics of Unemployment and Low-Wage Employment (pdf)
Argues: 'experiencing unemployment makes future unemployment more likely...an important part of the reason is the quality of the jobs taken by those who move into employment, which tend to be low paid and unstable. Thus a fuller picture of the dynamics of unemployment is provided by examining it in conjunction with the
type of job taken when an exit from unemployment occurs. There is also evidence of a link between them giving a cycle of unemployment
and low-wage employment.'
from : duncanoleary
3rd August 2007
