Complexity and endogeneity in economic modeling

The concepts of complexity, endogeneity and circular causation (Myrdal’s (1957) term was circular causation) are shown to be interrelated ones in configuring economic modeling in the framework of systemic embedding and its empirical application. The ensuing framework of economic modeling with complexity provides a controllable and predictable overarching worldview. Anomie in the economic universe and its embedded world-system is analytically rejected. This consequence is due to the epistemic nature of modeling that combines complexity, endogeneity, and circular causation for attaining predictability and controllability even in the face of complex systemic perturbations. The epistemology of unity of knowledge contrasted with rationalism is treated as the foundational worldview. An illustrative empirical work is given to convey the conceptual model and its applied viability.