Econophysics deserves a revamping

TL;DR

The paper advocates for a revamp of econophysics by focusing on economic complexity at a fundamental level, emphasizing small systems and precise definitions to enhance its relevance and understanding in economics.

Contribution

It introduces a new definition of dynamic complexity based on non-linear dynamical systems, aiming to deepen the study of economic systems with few interacting components.

Findings

Proposes a focus on small, simple systems to understand complex economic phenomena.

Highlights the importance of precise definitions of dynamic complexity in econophysics.

Suggests that a foundational approach can bridge gaps between economics and econophysics.

Abstract

The paper argues that attracting more economists and adopting a more-precise definition of dynamic complexity might help econophysics acquire more attention in the economics community and bring new lymph to economic research. It may be necessary to concentrate less on the applications than on the basics of economic complexity, beginning with expansion and deepening of the study of small systems with few interacting components, while until thus far complexity has been assumed to be a prerogative of complicated systems only. It is possible that without a thorough analysis at that level, the understanding of systems that are at the same time complex and complicated will continue to elude economics and econophysics research altogether. To that purpose, the paper initiates and frames a definition of dynamic complexity grounded on the concept of non-linear dynamical system.