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Evolution and the Growth Process: Natural Selection of Entrepreneurial Traits

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Author Info

  • Galor, Oded

    ()
    (Brown University)

  • Michalopoulos, Stelios

    ()
    (Brown University)

Abstract

This research suggests that a Darwinian evolution of entrepreneurial spirit played a significant role in the process of economic development and the dynamics of inequality within and across societies. The study argues that entrepreneurial spirit evolved non-monotonically in the course of human history. In early stages of development, risk-tolerant, growth promoting traits generated an evolutionary advantage and their increased representation accelerated the pace of technological progress and the process of economic development. In mature stages of development, however, risk-averse traits gained an evolutionary advantage, diminishing the growth potential of advanced economies and contributing to convergence in economic growth across countries.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6327.

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Length: 31 pages
Date of creation: Jan 2012
Date of revision:
Handle: RePEc:iza:izadps:dp6327

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Keywords: risk aversion; growth; technological progress; evolution; natural selection;

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References

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  24. Joseph Rodgers & Hans-Peter Kohler & Kirsten Kyvik & Kaare Christensen, 2001. "Behavior genetic modeling of human fertility: findings from a contemporary danish twin study," Demography, Springer, vol. 38(1), pages 29-42, February.
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  1. Natural selection and economic growth
    by Jason in Evolving Economics on 2011-06-02 19:02:10
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