Hicks and Richardson on industrial change:analysis and policy
AbstractThis paper is aimed at showing the complementarity between Richardson's and Hicks' contributions as regards the sketching out of a proper analytical framework for dynamic analysis. These contributions deal with two essential analytical ingredients that the out-of-equilibrium analysis of processes of economic change calls for: investment, in the sense of construction of productive capacity, and the relations which must be established for construction looked at as a process over time. In particular, light is thrown on the specific co-ordination problem that characterizes a process of economic change; a problem that arises at the junction of two strictly related lags: the phase of construction of productive capacity - which entails sunk costs - and the delay of transmission of information - which implies uncertainty. The analytical framework thus sketched out helps to understand why the economic agents' interaction does not bring about chaotic results, as long as the decision-makers are characterized by roughly stable patterns of behaviour and/or as long as a fair amount of co-ordination takes place, through various forms of cognitive exchange. It helps to show that the adoption of routines, the compliance to rules and customs, communicative action, the sharing of expectations about the behaviour of the system, the search for explicit agreements, are all mechanisms (or strategies) producing some degree of co-ordination, which confer the required order and stability to the environment.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Observatoire Francais des Conjonctures Economiques (OFCE) in its series Documents de Travail de l'OFCE with number 2008-28.
Date of creation: 2008
Date of revision:
Other versions of this item:
- Mario Amendola & S. Frey Bruno & Jean-Luc Gaffard, 2008. "Hicks and Richardson on industrial change : analysis and policy," Sciences Po publications 2008-28, Sciences Po.
- NEP-ALL-2008-12-14 (All new papers)
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.:
- Amendola, Mario & Bruno, Sergio, 1990. "The behaviour of the innovative firm: Relations to the environment," Research Policy, Elsevier, vol. 19(5), pages 419-433, October.
- Amendola, M & Gaffard, J L, 1992. "Intertemporal Complementarity and Money in an Economy out of Equilibrium," Journal of Evolutionary Economics, Springer, vol. 2(2), pages 131-45, August.
- Richardson, G B, 1972. "The Organisation of Industry," Economic Journal, Royal Economic Society, vol. 82(327), pages 883-96, September.
- Hicks, J R, 1970. "A Neo-Austrian Growth Theory," Economic Journal, Royal Economic Society, vol. 80(318), pages 257-81, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Francesco Saraceno).
If references are entirely missing, you can add them using this form.