06 Jun The Study of Economy Dynamics and Social Structures

The study of economic dynamics seeks to understand the change, stability and complexity of economic systems. It examines a variety of patterns that warrant further an investigation, including heterogeneous growth and changes across different regions and societies and regions; continuous economic instability that occurs during periods of relative stability; and spatial and temporal trends for business and financial instability. It is also interesting to determine how these patterns are connected to the structural characteristics of economies and, in particular the nature of their change.

In its simplest sense it is an organization of people who trade products and services to satisfy their desires and needs. Although today’s economic activities rely on the same principles as the early trades that helped to create modern society, they are much more complicated. Emile Durkheim noted a correlation between social cohesion as well as a society’s economic system, separating «mechanical» and «organic» solidarity, which are related to the division of labor. In simpler societies, mechanical solidarity might originate from common interests, like religion or work. In more advanced societies it can be a result of the interdependence of people who are specialized in their work. For example, elementary-school teachers depend on farmers for food; doctors rely on carpenters to provide shelter; etc.

The field of economic dynamics is a subfield of system dynamics that applies behavioral techniques to social systems and focuses on feedbacks. It is also closely connected to complexity science which focuses on non-equilibrium systems and the importance of interactions.

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