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2 Some complications that can occur with Structural Change

2.5 Genuine surprise


Although uncertainty is dealt with in mainstream economics, it is frequently characterised in a limited way, for example as an uncertain value drawn from a known probability distribution. The possibility of something outside an agent's conception of its environment occurring is difficult to express using only traditional numerical mathematical techniques. In a relatively stable situation there will be few such surprises, and so such limitations may well be acceptable. In situations of rapid structural change, one would expect such genuine surprises to be much more frequent and hence more significant.


The Role of Expressiveness in Modelling Structural Change - Bruce Edmonds - 16 MAY 96
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