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For Adam Smith, wealth was related to the division of labor. As people and firms specialize in different activities, economic efficiency increases, suggesting that development is associated with an increase in the number of individual…

General Finance · Quantitative Finance 2009-09-23 Cesar A. Hidalgo , Ricardo Hausmann

Some established and also novel techniques in the field of applications of algorithmic (Kolmogorov) complexity currently co-exist for the first time and are here reviewed, ranging from dominant ones such as statistical lossless compression…

Information Theory · Computer Science 2020-07-15 Hector Zenil

The present paper gives a statistical adventure towards exploring the average case complexity behavior of computer algorithms. Rather than following the traditional count based analytical (pen and paper) approach, we instead talk in terms…

Data Structures and Algorithms · Computer Science 2013-12-18 Niraj Kumar Singh , Soubhik Chakraborty , Dheeresh Kumar Mallick

The paper argues that attracting more economists and adopting a more-precise definition of dynamic complexity might help econophysics acquire more attention in the economics community and bring new lymph to economic research. It may be…

General Finance · Quantitative Finance 2020-02-03 Paolo Magrassi

A property, or statistical functional, is said to be elicitable if it minimizes expected loss for some loss function. The study of which properties are elicitable sheds light on the capabilities and limitations of point estimation and…

Machine Learning · Computer Science 2020-08-31 Rafael Frongillo , Ian A. Kash

We revisit the long-standing question of the relation between image appreciation and its statistical properties. We generate two different sets of random images well distributed along three measures of entropic complexity. We run a…

Statistical Mechanics · Physics 2020-07-01 Samy Lakhal , Alexandre Darmon , Jean-Philippe Bouchaud , Michael Benzaquen

In economic literature, economic complexity is typically approximated on the basis of an economy's gross export structure. However, in times of ever increasingly integrated global value chains, gross exports may convey an inaccurate image…

General Economics · Economics 2020-12-11 Philipp Koch

The paper describes an approach to measuring convergence of an algorithm to its result in terms of an entropy-like function of partitions of its inputs of a given length. The goal is to look at the algorithmic data processing from the…

Computational Complexity · Computer Science 2016-05-06 Anatol Slissenko

Estimating the capabilities, or inputs of production, that drive and constrain the economic development of urban areas has remained a challenging goal. We posit that capabilities are instantiated in the complexity and sophistication of…

Physics and Society · Physics 2021-09-17 Andres Gomez-Lievano , Oscar Patterson-Lomba

Knowhow in societies accumulates as it gets transmitted from group to group, and from generation to generation. However, we lack of a unified quantitative formalism that takes into account the structured process for how this accumulation…

Physics and Society · Physics 2018-10-15 Andres Gomez-Lievano

Understanding the confidence with which a machine learning model classifies an input datum is an important, and perhaps under-investigated, concept. In this paper, we propose a new calibration metric, the Entropic Calibration Difference…

Machine Learning · Computer Science 2025-02-21 Daniel James Sumler , Lee Devlin , Simon Maskell , Richard O. Lane

Strategies based on Explainable Artificial Intelligence - XAI have emerged in computing to promote a better understanding of predictions made by black box models. Most XAI measures used today explain these types of models, generating…

Machine Learning · Computer Science 2021-11-18 José Ribeiro , Raíssa Silva , Lucas Cardoso , Ronnie Alves

This work introduces a complexity measure which addresses some conflicting issues between existing ones by using a new principle - measuring the average amount of symmetry broken by an object. It attributes low (although different)…

Statistical Mechanics · Physics 2015-03-26 Roberto C. Alamino

We show how the Shannon entropy function can be used as a basis to set up complexity measures weighting the economic efficiency of countries and the specialization of products beyond bare diversification. This entropy function guarantees…

Physics and Society · Physics 2021-06-04 Gianluca Teza , Michele Caraglio , Attilio L. Stella

We use algorithmic and network-based tools to build and analyze the bipartite network connecting jobs with the skills they require. We quantify and represent the relatedness between jobs and skills by using statistically validated networks.…

General Economics · Economics 2023-04-12 Sabrina Aufiero , Giordano De Marzo , Angelica Sbardella , Andrea Zaccaria

The paper reviews two prominent approaches for the measurement of technological complexity: the method of reflection and the assessment of technologies' combinatorial difficulty. It discusses their central underlying assumptions and…

Applications · Statistics 2018-03-12 Tom Broekel

We critique the measure of complexity introduced by Shiner, Davison, and Landsberg in Ref. [1]. In particular, we point out that it is over-universal, in the sense that it has the same dependence on disorder for structurally distinct…

chao-dyn · Physics 2009-10-31 James P. Crutchfield , David P. Feldman , Cosma Rohilla Shalizi

Measuring software complexity plays an important role to meet the demands of complex software. The cyclomatic complexity is one of most used and renowned metric among the other three proposed and researched metrics that are namely: Line of…

Software Engineering · Computer Science 2014-12-22 Ankita Garg

Complexity is a multi-faceted phenomenon, involving a variety of features including disorder, nonlinearity, and self-organisation. We use a recently developed rigorous framework for complexity to understand measures of complexity. We…

Adaptation and Self-Organizing Systems · Physics 2020-09-22 Karoline Wiesner , James Ladyman

We provide a theoretical framework to understand how widely used measures of choice difficulty relate. In a binary-option Bayesian expected-utility framework, we show that three measures of difficulty, (i) understanding (ex-ante value),…

Theoretical Economics · Economics 2026-04-30 Chris Chambers , Yusufcan Masatolioglu , Paulo Natenzon , Collin Raymond