Advanced Search
MyIDEAS: Login

Endogenous Growth in Open-Ended Economies with Locally Interacting Agents

Contents:

Author Info

  • Giorgio Fagiolo

Abstract

Building on some general properties of the empirical patterns of technological diffusion and innovation, the paper presents a simple model in which self-sustaining growth endogenously emerges as the result of imperfect coordination among stylized, boundedly rational, heterogeneous, firms locally interacting in an open-ended technological space and are able to modify the set of their 'nearest-neighbors'. We allow the system to be characterized by: (i) endless opportunities of introducing either 'incremental' or 'radical' innovations; (ii) path-dependency in learning achievements; (iii) dynamic increasing returns grounded upon collectively shared 'knowledge bases'. By means of extensive Montecarlo studies, we identify necessary conditions for patterns of persistently fluctuating exponential growth to be generated in the economy. We also investigate causal relationships between system/behavioral parameters tuning the sources of growth and: (a) the overall performance of the economy; (b) the emrgence of the exploitation-exploration trade-off; (c) the ability of the system to self-organize and generate GNP time-series of exponential grwth with small growth-rates long-run volatility and statistical properties similar to those exhibited by empirical observed ones. Finally, the effects of behavioral heterogeneity on aggregate outcomes are analyzed and a simple example is presented in which collective economic growth finds its necessary condition in the presence of a share of 'irrational' individuals in the population.

Download Info

If 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.
File URL: http://www.lem.sssup.it/WPLem/files/2000-07.zip
Download Restriction: no

Bibliographic Info

Paper provided by Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy in its series LEM Papers Series with number 2000/07.

as in new window
Length:
Date of creation: 10 Dec 2000
Date of revision:
Handle: RePEc:ssa:lemwps:2000/07

Contact details of provider:
Postal: Piazza dei Martiri della Liberta, 33, 56127 Pisa
Phone: +39-50-883343
Fax: +39-50-883344
Email:
Web page: http://www.lem.sssup.it/
More information through EDIRC

Related research

Keywords: Innovation; Endogenous Growth; Local Interactions; Exploitation vs. Exploration;

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Giorgio Fagiolo & Giovanni Dosi, 2002. "Exploitation, Exploration and Innovation in a Model of Endogenous Growth with Locally interacting Agents," LEM Papers Series 2002/25, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ssa:lemwps:2000/07. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.