Evolutionary Micro-founded Technical Change and The Kaldor-Verdoorn Law: Estimates from an Artificial World
AbstractThis paper proposes to identify the micro-level sources for the dynamic increasing returns occurring at an aggregate level. The paper reverts to a micro model of technological change in-line with the evolutionary literature on industrial dynamics. The data generated through numerical simulations are used to identify the sources of increasing returns as measured by the Kaldor-Verdoorn Law. In this respect we also aim to provide some plausible micro-foundations to this Law. The paper shows that: (i) Dynamic increasing returns appear as an emergent property of the model; (ii) micro-characteristics of technical change, as the amplitude and the frequency of changes, as well as selection mechanisms significantly shape these increasing returns.
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Bibliographic InfoPaper provided by Max Planck Institute of Economics, Evolutionary Economics Group in its series Papers on Economics and Evolution with number 2009-01.
Date of creation: Apr 2009
Date of revision:
Find related papers by JEL classification:
- B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Institutional; Evolutionary
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-04-25 (All new papers)
- NEP-CMP-2009-04-25 (Computational Economics)
- NEP-EVO-2009-04-25 (Evolutionary Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mark Knell, 2004. "Structure Change and the Kaldor-Verdoorn law in the 1990s," Revue d'Économie Industrielle, Programme National Persée, vol. 105(1), pages 71-83.
- Patrick Llerena & André Lorentz, 2004. "Cumulative Causation and Evolutionary Micro-Founded Technical Change. On the Determinants of Growth rate Differences," Revue économique, Presses de Sciences-Po, vol. 55(6), pages 1191-1214.
- Silverberg, Gerald & Verspagen, Bart, 1994. "Learning, innovation and economic growth: A long-run model of industrial dynamics," Open Access publications from Maastricht University urn:nbn:nl:ui:27-18133, Maastricht University.
- Amendola, Mario & Gaffard, Jean-Luc, 1998. "Out of Equilibrium," OUP Catalogue, Oxford University Press, number 9780198293804.
- Vitor Joao Pereira Domingues Martinho, 2012.
"The Keynesian theory and the manufactured industry in Portugal,"
- Martinho, Vítor João Pereira Domingues, 2011. "The Keynesian theory and the manufactured industry in Portugal," MPRA Paper 33363, University Library of Munich, Germany.
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