Endogenous Tipping and Self-Organized Criticality
The economy is attracted to the critical curve boundary through endogenous evolution. Four channels drive complementarity toward the tipping point.
Impact Score
Score Reasoning
- Importance
- Central to Paper 3 dynamics: derives 'stability breeds instability' as a theorem. Price equation for rho and self-destabilizing/self-stabilizing asymmetry is core to crisis framework.
- Novelty
- Derives the Minsky principle from CES selection dynamics via the Price equation. Self-correcting crisis mechanism and evolutionary rho dynamics are new theoretical contributions.
- Quality
- Excellent structure showing self-destabilizing booms vs self-stabilizing busts. Clear Price equation exposition with well-motivated economic interpretation.