Recognizing that the economy is a complex system with boundedly rational interacting agents, the book presents a theory of behavioral rationality and heterogeneous expectations in complex economic systems and confronts the nonlinear dynamic models with empirical stylized facts and laboratory experiments. The complexity modeling paradigm has been strongly advocated since the late 1980s by some e...

Background In 2004, the health system in Iran initiated an organizational reform aiming to increase the autonomy of teaching hospitals and make them more decentralized. The policy led to the formation of a board of trustees in each hospital and significant modifications in hospitals’ financing. Since the reform aimed to improve its predecessor policy (implementation of hospital autonomy began i...

The recent global financial crisis has been marked by prolonged deep recessions in advanced countries. Academic researchers and policy makers have devoted much of their time and efforts to understand the effectiveness and consequences on emerging countries of non-standard macroeconomic policies adopted by advanced countries. The main goal of the annual conference of Seoul Journal of Economics 2...

among the many reasons that may limit the adoption of promising reform ideas, policy capacity is the least recognized. the concept itself is not widely understood. although policy capacity is concerned with the gathering of information and the formulation of options for public action in the initial phases of policy consultation and development, it also touches on all stages of the policy proces...

This chapter has two objectives: to produce new arguments for an actual policy issue and thus demonstrate the fruitfulness of a new theory. The theory is a recently proposed generalization of Darwinism termed “evolutionary-developmental economics,” which recognizes individuals to be rational only boundedly and unequally. The issue is old, but actualized by the recent financial crises: By what g...

Cross-border equity and long-term debt securities portfolio investment networks are analysed from 2002 to 2012, covering the 2008 global financial crisis. They serve as network-proxies for measuring the robustness of the global financial system and the interdependence of financial markets, respectively. Two early-warning indicators for financial crises are identified: First, the algebraic conne...

in the past few decades, capitalist economic system has witnessed different financial crises the most important of which is the 2008 financial crisis. the crisis had different causes that the main causes are innovations and financial assets without actual backing (real underlying asset) and their developing by financial institutions. namely, financial institutions, especially banks, developed t...

As the global financial crisis has shown, reaping the benefits of financial development and international financial integration without incurring large risks remains a key challenge for many countries around the world. The financial system is inherently procyclical, that is, it tends to amplify the business cycle. Faced with a positive shock, financial institutions and markets can behave in the...