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Visualising Roman Institutional Environments for Exchange as a Complex System

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Complexity Economics

Part of the book series: Palgrave Studies in Ancient Economies ((PASTAE))

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Abstract

Haklai combines an institutional approach with complexity economics to analyse Roman legal environments during the High Empire; specifically, the institutional framework for using money in the private sphere. The chapter starts with the relationship between economics and complexity theory, gives examples of visualised complexity, and surveys visualisations previously applied in studying ancient economies. Haklai offers two complexity-oriented visualisations: The first diagram explores the complex mechanism of money in Roman law, acknowledging its abstract nature whilst accommodating a spectrum of its physical manifestations. The second is a causal loop diagram, which partially visualises the institutional environments of economic interactions carried out under coexisting legal systems: Roman, Greek-Egyptian, and Jewish. Both visualisations emphasise the self-adjustment of the institutional environment and the emergence of new practices and procedures.

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Notes

  1. 1.

    North, “Institutions,” 97.

  2. 2.

    Andreau, La vie financière dans le monde romain; Andreau, Banking and Business in the Roman World; Rathbone and Temin, “Financial Intervention in first century AD Rome and Eighteenth Century England”.

  3. 3.

    Rathbone, Economic Rationalism and Rural Society in Third-Century A.D. Egypt; Kehoe, Investment, Profit, and Tenancy; Kehoe, Law and the Rural Economy in the Roman Empire.

  4. 4.

    As put by Snowdon and Vane, Modern Macroeconomics, 4: “Theories, by definition, are simplifications of reality. This must be so given the complexity of the real world.”

  5. 5.

    To use the metaphor of Leijonhufvud, “Life among the Econ”, who wrote a spoof anthropological article about the two castes within the tribe of the Econ, the Micro-caste and the Macro-caste, each with its own totem, which look remarkably similar to each other, that is the supply-demand and the LM-IS curves crossing one another in the point of equilibrium.

  6. 6.

    Weaver, “Science and Complexity”, who offers a good starting point.

  7. 7.

    Wible, “What is Complexity?”; Prasch, “Complexity and Economic Method”; Montgomery, “Complexity Theory”.

  8. 8.

    Nicolis and Prigogine, Exploring Complexity, 2–6.

  9. 9.

    Van Der Leeuw and McGlade, “Archaeology and Non-linear Dynamics,” 14.

  10. 10.

    Nicolis and Prigogine, Exploring Complexity, 25–7; Wible, “What is complexity?,” 17–8.

  11. 11.

    Wible, “What is complexity?,” 18–9.

  12. 12.

    On features of complexity advocated by Austrian economics, see below.

  13. 13.

    http://www.santafe.edu. Anderson, Arrow, and Pines, The Economy as an Evolving Complex System; Arthur, Durlauf, and Lane, The Economy as an Evolving Complex System; Wible, “What is Complexity?”.

  14. 14.

    Labelled “The changing face of Economics” by Colander, Holt, and Rosser, The Changing Face of Economics.

  15. 15.

    For instance Lindgren, “Evolutionary Dynamics in Game-Theoretic Models”; Metcalfe and Foster, Evolution and Economic Complexity.

  16. 16.

    For example, North, “Some Fundamental Puzzles in Economic History/Development”; Prasch, “Complexity and Economic Method,” 220–2.

  17. 17.

    For example, Brock, “Asset Price Behavior in Complex Environments”; Kirman, “The Economy as an Interactive System”.

  18. 18.

    Arthur, Durlauf, and Lane, “Introduction”.

  19. 19.

    Arthur, “Positive Feedbacks in the Economy”; Arthur, Durlauf, and Lane, “Introduction,” 4–6.

  20. 20.

    Arthur, Durlauf, and Lane, “Introduction,” 2–5.

  21. 21.

    Day, “Complex Economic Dynamics”, 14; Montgomery, “Complexity Theory”; Shapiro, “A Hitchhiker’s Guide to the Techniques of Adaptive Nonlinear Models”; Velupialli, “Non-Linear Dynamics, Complexity and Randomness”.

  22. 22.

    Arthur, Durlauf, and Lane, The Economy as an Evolving Complex System; Lane, “Is What Is Good for Each Best for All”; Prasch, “Complexity and Economic Method”.

  23. 23.

    Day, “Complex Economic Dynamics”; Arthur, Durlauf, and Lane, “Introduction,” 5–11; Krugman, “How the Economy Organises Itself in Space,” 241–3.

  24. 24.

    Weaver, “Science and Complexity,” 539.

  25. 25.

    Vaughn, “Hayek’s Implicit Economics”; Koppl, “Complexity and Austrian Economics”, who even attributes a proto-complexity approach to the founding father of the Austrian economic school, Carl Menger, seeing him as a predecessor of the “spontaneous order” idea; J. Barkley Rosser, “How complex are the Austrians?”.

  26. 26.

    Hayek, Individualism and Economic Order; id., “The Theory of Complex Phenomena”. On Hayek’s complexity ideas, see Chaumont-Chancelier, “Hayek’s Complexity”; Vaughn, “Hayek’s Implicit Economics”; Wible, “What is complexity?,” 19–23; Caldwell, Hayek’s challenge, 323–82; Gaus, “Hayek on the evolution of society and mind”, 232–58.

  27. 27.

    Vaughn, “Hayek’s Implicit Economics;” Montgomery, “Complexity Theory: An Austrian perspective,” 228–9; Rosser, “How complex are the Austrians?”.

  28. 28.

    Hayek, “The Theory of Complex Phenomena”; Wible, “What is complexity?,” 19–23; Montgomery, “Complexity Theory: An Austrian perspective”; Rosser, “How Complex are the Austrians?”.

  29. 29.

    Adam Ferguson, The History of Economic Thought (1767), quoted in Hayek, The Constitution of Liberty, 57.

  30. 30.

    For example, Krugman, The Self-Organizing Economy.

  31. 31.

    Contra, Koppl, “Complexity and Austrian Economics”. On Austrian vs. Complexity economics, see Montgomery, “Complexity Theory”; Rosser, “How Complex are the Austrians?”.

  32. 32.

    Montgomery, “Complexity Theory”.

  33. 33.

    Arthur, Durlauf, and Lane, “Introduction,” 3.

  34. 34.

    Arthur, Durlauf, and Lane, “Introduction,” 3–4; Prasch, “Complexity and Economic Method,” 216. There is another prominent distinction: while economists affiliated with the new complexity perspective tend to advocate market-intervention policies, Austrian economics usually strongly rejects government intervention.

  35. 35.

    Ware, Information Visualization, 2–4.

  36. 36.

    Lima, Visual Complexity, who offers a short history of Tree-Models, further elaborated in Lima, The Book of Trees.

  37. 37.

    Van der Leeuw and McGlade, “Archaeology and Non-Linear Dynamics,” 13.

  38. 38.

    For criticism on Tree Models, see Lima, Visual Complexity, 43–69.

  39. 39.

    On nineteenth-century scientific paradigm of thought as one which concerns “simple problems,” see Weaver, “Science and complexity.”

  40. 40.

    Manovich, “Introduction,” 13.

  41. 41.

    Lima, Visual Complexity, 97, 158, who offers a sort of a manual for possible schemata.

  42. 42.

    Ibid., 98–157, who gives examples for network-based visualisations.

  43. 43.

    Ibid., 188–91.

  44. 44.

    Ibid., 160–3.

  45. 45.

    Ibid., 164–6.

  46. 46.

    Econophysics often is concerned with financial markets; for criticism, see Casti, “Money is Funny”.

  47. 47.

    Jovanovic and Schinckus, “The Emergence of Econophysics”.

  48. 48.

    Schinckus, “Between Complexity of Modelling and Modelling of Complexity”; Jovanovic and Schinckus, “The Emergence of Econophysics.”

  49. 49.

    Schinckus, “Between Complexity of Modelling and Modelling of Complexity,” 3655.

  50. 50.

    Ibid.

  51. 51.

    Schinckus, “Between Complexity of Modelling and Modelling of Complexity”; Jovanovic and Schinckus, “The Emergence of Econophysics,” sec. III.2, 19–20, in the online version.

  52. 52.

    With the stationary hypothesis according to which future data will be a statistical reflection of past data; Schinckus, “Between Complexity of Modelling and Modelling of Complexity,” 3656, 3660, 3661 n. 26.

  53. 53.

    Tumminello et al., “A Tool for Filtering Information in Complex Systems,” 10423.

  54. 54.

    Ibid., 10421.

  55. 55.

    Ibid., 10423.

  56. 56.

    Lima, Visual Complexity, 158, 192–5.

  57. 57.

    Deleuze and Guattari, A Thousand Plateaus, 21; cited in Lima, Visual Complexity, 44.

  58. 58.

    Vandenbroeck, Goossens, and Clemens, Tackling Obesities; Lima, Visual Complexity, 194.

  59. 59.

    Lima, Visual Complexity, 158, 194, who categorises this model as “organic rhizome.”

  60. 60.

    Vennix, Group Model Building, 3–7 (on the assumptions of system dynamics methodology), 52–60 (on casual loop models).

  61. 61.

    Vandenbroeck, Goossens, and Clemens, Tackling Obesities, 3–6.

  62. 62.

    Ibid., 4–6.

  63. 63.

    Holland, Emergence; but see Corning, “The re-emergence of emergence”.

  64. 64.

    For example, Finley, The Ancient Economy, 177–8, who speaks of a “large unified economic space.”

  65. 65.

    Duncan-Jones, Structure and Scale in the Roman Economy, 44. Also, Hopkins, “Taxes and Trade,” 104, who mentions “cellular autarky of individual peasant farmers”; Davies, “Linear and Nonlinear Flow Models for Ancient Economies,” 152–3, who offers cellular-structured visualisation for ancient economies.

  66. 66.

    Ware, Information Visualization, xvii.

  67. 67.

    Davies, “Linear and Nonlinear Flow Models,” 130–41, 152, who gives a survey of the relevant literature.

  68. 68.

    Hopkins, “Taxes and Trade”.

  69. 69.

    What Davies, “Linear and Nonlinear Flow Models,” 139, calls “the “return” (real or symbolic, full or inadequate) from the centre and periphery to the middle zone.”

  70. 70.

    For example, Andreau, Banking and Business in the Roman World, 135.

  71. 71.

    Davies, “Ancient Economies: Models and Muddles”; Davies, “Linear and Nonlinear Flow Models”.

  72. 72.

    Van Der Leeuw and McGlade, Time, process, and structured transformation in archaeology.

  73. 73.

    For example, Seland, “Here, There and Everywhere.”

  74. 74.

    Davies, “Linear and Nonlinear Flow Models,” 142.

  75. 75.

    Ibid., 140–2.

  76. 76.

    Davies, “Ancient Economies: Models and Muddles.”

  77. 77.

    Davies, “Linear and Nonlinear Flow Models.”

  78. 78.

    Ibid., 155.

  79. 79.

    Ibid., 142–52.

  80. 80.

    On “organised complexity,” see Weaver, “Science and Complexity.”

  81. 81.

    For example, the supply-demand or LM-IS curves, crossing one another at the point of equilibrium.

  82. 82.

    Davies, “Linear and Nonlinear Flow Models.”

  83. 83.

    Ulp. Dig. 50.16.178.pr. (49 ad sab.).

  84. 84.

    For example, Paul. Dig. 18.1.1.1 (33 ad ed.); Ulp. Dig. 14.6.7.3 (29 ad ed.).

  85. 85.

    Harris, “A revisionist view of Roman money”; Bange, Kreditgeld in der römischen Antike.

  86. 86.

    That is, based on the joint agreement of the parties; Gai. Inst. 3.135; Epit. 2.9.13; Paul. Dig. 19.2.1 (34 ad ed.); Just. Inst. 3.22; 29.4.

  87. 87.

    Gai. Inst. 3.137.

  88. 88.

    For example, Ulp. Dig. 19.2.9.pr. (32 ad ed.); Paul. Dig. 19.2.24.4 (34 ad ed.); Afric. Dig. 19.2.33 (8 quaest.).

  89. 89.

    Kaser, Das römishce Privatrecht, 563.

  90. 90.

    For example, Labeo Dig. 19. 2. 60. 8 (5 post. a javol. Epit.); Pompon. Dig. 18. 1. 20 (9 ad sab.).

  91. 91.

    For example, Papin. Dig. 16. 3. 25. 1 (3 respon.); Paul. Dig. 47. 2. 21. 1 (40 ad sab.).

  92. 92.

    For example, Papin. Dig. 16. 3. 24 (9 quaest.); Paul. Dig. 16. 3. 26. 1 (4 respon.); Ulp. Dig. 16. 3. 7. 2–3 (30 ad ed.); 42. 5. 24. 2 (63 ad ed.), in both excerpts Ulpian rules that depositors who received interest on their deposits should be “considered to have renounced their deposits,” thereby indicating that this was, in fact, a common practice; Scaev. Dig. 32. 37. 5 (18 dig.); Cod Iust. 4. 34. 4 (Gordian, 238–244 CE).

  93. 93.

    Kaser, Das römische Privatrecht, 536.

  94. 94.

    Gaius discusses twenty-two such controversies, and some are mentioned also in Justinian’s Corpus Iuris Civilis; Leesen, Gaius Meets Cicero.

  95. 95.

    The main texts are Gai. Inst. 3. 141; Paul. Dig. 18. 1. 1. 1 (33 ad ed.); 19. 4. 1. pr. (32 ad ed.).

  96. 96.

    See notes 91–93 above.

  97. 97.

    No matter whether regarded as the so-called locatio conductio operis (contracting a task), or locatio conductio operarum (employing a guard).

  98. 98.

    For example, Harris, “A revisionist view of Roman money”; Bange, Kreditgeld in der römischen Antike.

  99. 99.

    For example, the Babatha archive; Oudshoorn, The Relationship between Roman and Local Law in the Babatha and Salome Komaise Archives.

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Haklai, M. (2021). Visualising Roman Institutional Environments for Exchange as a Complex System. In: Verboven, K. (eds) Complexity Economics. Palgrave Studies in Ancient Economies. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-47898-8_5

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