IDEAS home Printed from https://ideas.repec.org/a/bla/metroe/v65y2014i3p397-429.html
   My bibliography  Save this article

A Stock Flow Consistent Analysis of a Schumpeterian Innovation Economy

Author

Listed:
  • Alessandro Caiani
  • Antoine Godin
  • Stefano Lucarelli

Abstract

Schumpeter argued that boom and bust cycles are inherent to the rise of innovation and constitute an unavoidable consequence of the way the capitalist system reacts to the emergence of a wave of innovations. This contribution aims to describe Schumpeterian economic development in a ‘monetary theory of production’ framework, emphasizing the crucial role played by credit creation, conceived as ‘the monetary complement’ of innovation. By adopting a stock flow consistent analytical approach, we analyze both the structural change process triggered in the real economy by the emergence of innovation, and the monetary dynamics arising during the various stages of the development process.

Suggested Citation

  • Alessandro Caiani & Antoine Godin & Stefano Lucarelli, 2014. "A Stock Flow Consistent Analysis of a Schumpeterian Innovation Economy," Metroeconomica, Wiley Blackwell, vol. 65(3), pages 397-429, July.
  • Handle: RePEc:bla:metroe:v:65:y:2014:i:3:p:397-429
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/meca.12045
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tommaso Ciarli & André Lorentz & Maria Savona & Marco Valente, 2010. "The Effect Of Consumption And Production Structure On Growth And Distribution. A Micro To Macro Model," Metroeconomica, Wiley Blackwell, vol. 61(1), pages 180-218, February.
    2. Marco A. Crocco, 2008. "Technical Change And Formation Of Expectations," Metroeconomica, Wiley Blackwell, vol. 59(2), pages 276-304, May.
    3. Giancarlo Bertocco, 2001. "Is Kaldor's Theory of Money Supply Endogeneity Still Relevant?," Metroeconomica, Wiley Blackwell, vol. 52(1), pages 95-120, February.
    4. Winter, Sidney G., 1984. "Schumpeterian competition in alternative technological regimes," Journal of Economic Behavior & Organization, Elsevier, vol. 5(3-4), pages 287-320.
    5. Graziani,Augusto, 2003. "The Monetary Theory of Production," Cambridge Books, Cambridge University Press, number 9780521812115, October.
    6. Gennaro Zezza, 2004. "Some Simple, Consistent Models of the Monetary Circuit," Macroeconomics 0405006, University Library of Munich, Germany.
    7. Eugenio Caverzasi & Antoine Godin, 2013. "Stock-flow Consistent Modeling through the Ages," Economics Working Paper Archive wp_745, Levy Economics Institute.
    8. Dosi, Giovanni, 1993. "Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change," Research Policy, Elsevier, vol. 22(2), pages 102-103, April.
    9. Carlota Perez, 2002. "Technological Revolutions and Financial Capital," Books, Edward Elgar Publishing, number 2640.
    10. Thomas I. Palley, 2002. "Endogenous Money: What it is and Why it Matters," Metroeconomica, Wiley Blackwell, vol. 53(2), pages 152-180, May.
    11. Fumagalli, Andrea & Lucarelli, Stefano, 2008. "Money and Technological Change: The Role of Financing in the Process of Evolution: Introduction," European Journal of Economic and Social Systems, Lavoisier, vol. 21(2), pages 151-163.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Thomas Lagoarde-Ségot & Alban Mathieu, 2024. "Ecological money and finance—upscaling local complementary currencies," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    2. Konstantin Makrelov & Channing Arndt & Rob Davies & Laurence Harris, 2018. "Stock-and-flow-consistent macroeconomic model for South Africa," WIDER Working Paper Series wp-2018-7, World Institute for Development Economic Research (UNU-WIDER).
    3. Makrelov, Konstantin & Arndt, Channing & Davies, Rob & Harris, Laurence, 2020. "Balance sheet changes and the impact of financial sector risk-taking on fiscal multipliers," Economic Modelling, Elsevier, vol. 87(C), pages 322-343.
    4. Konstantin Makrelov & Rob Davies & Laurence Harris, 2021. "The impact of higher leverage ratios on the South African economy," Studies in Economics and Econometrics, Taylor & Francis Journals, vol. 45(3), pages 184-207, July.
    5. Reiner Franke, 2017. "What output-capital ratio to adopt for macroeconomic calibrations?," International Review of Applied Economics, Taylor & Francis Journals, vol. 31(2), pages 208-224, March.
    6. David Haas, 2015. "Diffusion Dynamics and Creative Destruction in a Simple Classical Model," Metroeconomica, Wiley Blackwell, vol. 66(4), pages 638-660, November.
    7. Alessandro Caiani & Ermanno Catullo & Mauro Gallegati, 2018. "The effects of fiscal targets in a monetary union: a multi-country agent-based stock flow consistent model," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(6), pages 1123-1154.
    8. Gianfranco Giulioni & Marcello Silvestri & Edgardo Bucciarelli, 2017. "Firms’ Finance in an Experimentally Microfounded Agent-Based Macroeconomic Model," Metroeconomica, Wiley Blackwell, vol. 68(2), pages 259-320, May.
    9. Konstantin Makrelov & Channing Arndt & Rob Davies & Laurence Harris, 2018. "Stock-and-flow-consistent macroeconomic model for South Africa," WIDER Working Paper Series 007, World Institute for Development Economic Research (UNU-WIDER).
    10. Gobbi, Lucio & Lucarelli, Stefano, 2022. "Pound Sterling depreciation and the UK's trade balance versus the USA's: Industry-level estimates," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 206-220.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alessandro Caiani & Antoine Godin & Stefano Lucarelli, 2015. "Innovation and Finance: A Stock Flow Consistent Analysis of Great Surges of Development," Economic Complexity and Evolution, in: Andreas Pyka & John Foster (ed.), The Evolution of Economic and Innovation Systems, edition 127, pages 401-430, Springer.
    2. Fagerberg, Jan, 2018. "Mobilizing innovation for sustainability transitions: A comment on transformative innovation policy," Research Policy, Elsevier, vol. 47(9), pages 1568-1576.
    3. Alessandro Caiani & Antoine Godin & Stefano Lucarelli, 2012. "Schumpeter in a matrix: a Stock Flow Consistent analysis of technological change," Quaderni di Dipartimento 175, University of Pavia, Department of Economics and Quantitative Methods.
    4. Dosi, Giovanni & Nelson, Richard R., 2010. "Technical Change and Industrial Dynamics as Evolutionary Processes," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 51-127, Elsevier.
    5. Alessandro Nuvolari & Emanuele Russo, 2019. "Technical progress and structural change: a long-term view," LEM Papers Series 2019/17, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    6. Eugenio Caverzasi & Daniele Tori, 2018. "The Financial Innovation Hypothesis: Schumpeter, Minsky and the sub-prime mortgage crisis," Working Papers PKWP1815, Post Keynesian Economics Society (PKES).
    7. Eugenio Caverzasi, 2013. "The Missing Macro Link," Economics Working Paper Archive wp_753, Levy Economics Institute.
    8. Eugenio Caverzasi & Antoine Godin, 2013. "Stock-flow Consistent Modeling through the Ages," Economics Working Paper Archive wp_745, Levy Economics Institute.
    9. Luigi Orsenigo & Fabio Pammolli & Massimo Riccaboni & Andrea Bonaccorsi & Giuseppe Turchetti, 1997. "The Evolution of Knowledge and the Dynamics of an Industry Network," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 1(2), pages 147-175, June.
    10. Pammolli, Fabio & Riccaboni, Massimo, 2002. "Technological Regimes and the Growth of Networks: An Empirical Analysis," Small Business Economics, Springer, vol. 19(3), pages 205-215, November.
    11. repec:ers:journl:v:xv:y:2012:i:sie:p:157-194 is not listed on IDEAS
    12. Juan Hernández Andreu & Guido Tortorella Expósito, 2014. "Incertidumbre, ciclo económico y crisis según el enfoque continuista del pensamiento keynesiano [Uncertainty, economic cycles and economic crises according to the continuism approach of Keynesian t," Iberian Journal of the History of Economic Thought, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Dpto. Historia e Instituciones Económicas I., vol. 1(1), pages 44-72, September.
    13. Archibugi, Daniele & Filippetti, Andrea & Frenz, Marion, 2013. "Economic crisis and innovation: Is destruction prevailing over accumulation?," Research Policy, Elsevier, vol. 42(2), pages 303-314.
    14. Choung, Jae-Yong & Ji, Illyong & Hameed, Tahir, 2011. "International Standardization Strategies of Latecomers: The Cases of Korean TPEG, T-DMB, and Binary CDMA," World Development, Elsevier, vol. 39(5), pages 824-838, May.
    15. Rita Strohmaier & Marlies Schuetz & Simone Vannuccini, 2019. "A systemic perspective on socioeconomic transformation in the digital age," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 46(3), pages 361-378, September.
    16. Alessandro Caiani, 2017. "Innovation Dynamics and Industry Structure Under Different Technological Spaces," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 3(3), pages 307-341, November.
    17. Matteo Lucchese, 2011. "Innovation, demand and structural change in Europe," Working Papers 1109, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2011.
    18. Künneke, Rolf & Groenewegen, John & Ménard, Claude, 2010. "Aligning modes of organization with technology: Critical transactions in the reform of infrastructures," Journal of Economic Behavior & Organization, Elsevier, vol. 75(3), pages 494-505, September.
    19. Dario Guarascio & Mario Pianta & Matteo Lucchese & Francesco Bogliacino, 2015. "Business cycles, technology and exports," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 32(2), pages 167-200, August.
    20. Mauro Napoletano & Stefano Battiston & Michael D König & Frank Schweitzer, 2008. "The efficiency and evolution of R&D Networks," Working Papers hal-01066189, HAL.
    21. Fulvio Castellacci, 2007. "Technological regimes and sectoral differences in productivity growth ," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(6), pages 1105-1145, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:metroe:v:65:y:2014:i:3:p:397-429. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0026-1386 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.