Operations Research, Systems Engineering and Industrial Engineering Commons^™

Modeling The Components Of An Economy As A Complex Adaptive System, Richard J. Mickelsen

Theses and Dissertations

Complex systems science is a relatively new discipline and has not been widely applied to the field of economics. Much of current economic theory relies on principles of constrained optimization and often fails to see economic variables as part of an interconnected network. While tools for forecasting economic indicators are based primarily on autoregressive techniques, these techniques are not always well-suited to predicting the future performance of highly volatile data sets such as the stock market. This research portrays the stock market as one component of a networked system of economic variables, with the federal funds rate acting as an …