Since this has been such a big part of my everyday head for a while, I feel a bit sheepish highlighting it. But often when reading things, I remember some of the best advice is not universally followed.
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This terribly misguided paper is making the rounds.
This thread is to make it common knowledge what is wrong with it.
The basic thing: all modern economic theory allows for a gap between individual maximization and efficiency, whatever you mean exactly by each of these.
The first welfare theorem (individual optimization implies social efficiency) breaks down in the presence of frictions -
e.g., incomplete markets, asymmetric information, externalities, and market power.
Most economics today is about these frictions.
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Now, the paper has some halfhearted recognition of this, but says, effectively
"Well, you know, there is some meta-stage in which institutions are chosen, and economics assumes that this choice will be made to kill all frictions except the efficient ones."
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a few notes on it from an economist studying network theory
The striking thing about César's hit 2009 paper on economic complexity is that it doesn't mention eigen-anything and seems surprisingly disengaged from network theory.
The economic complexity index that Hidalgo and Hausman propose in "The building blocks of economic complexity" is a very close variant of Kleinberg's very famous 1999 HITS algorithm.
It's not clear whether they're aware of this connection, but in any case
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economists writing about networks in 2009, such as Jackson, Acemoglu, myself, and many others would have probably written the paper differently --
with a clearer consciousness to our big debt to the prior study of eigenthings as centrality measures!