A new discussion paper by Johannes Buchner titled “Critical Mathematical Economics and AI for Ecological Economic Planning – The Misuse of Mathematical Models and the Ambivalence of AI for Economic Democracy” has been published. You can find the abstract (translated from the original German) below:
“The dramatic economic consequences of climate change are fundamentally underestimated by the neoclassical paradigm that prevails in large parts of
economic science. This is also due to mathematical reasons, as equilibrium models dominate in this field, models that are unsuitable for the nonlinear structure of the climate system. We therefore propose a “critical mathematical economics” to critique such misuse of mathematical models, develop better models, and support economic systems that go beyond capitalism using methods from mathematics and computer science. In particular, this concerns the possibility and necessity of ecological and democratic economic planning, also in light of current AI developments. We take a closer look at both the technical possibilities and the ambivalence of AI from a progressive perspective (including various fundamental definitions of what “AI” actually means), with a focus on sustainability, the circular economy, and economic democracy.”
You can find the full paper (in German) here.
He will also soon be teaching a course on the same intersection of topics.