Non-equilibrium economics

[1][2][3][4][5] Research in the tradition of Disequilibrium macroeconomics which was influential in the 1970s departed from some equilibrium assumptions such as market clearing and quick price adaption, studying markets with fixed prices, leading to models of “non-Walrasian” equilibrium with rationing, but not to a genuine out-of-equilibrium dynamic analysis.

This approach is used to study phenomena such as market crashes, economic crises, and the effects of policy interventions.

[13][14] Constrained dynamics models the economy as interacting, bounded rational agents that try to adjust the economic variables to improve their situation (hill climbing as opposed to utility maximization).

Modeling concepts include differential equations, stochastic processes, graphs and evolutionary algorithms.

This approach allows economists to study emergent phenomena, such as market behavior and collective decision-making, by treating economic agents as particles in a statistical ensemble, thereby uncovering patterns, networks and distributions that arise from individual actions.