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Is novelty always a good thing? Towards an evolutionary welfare economics

Listed author(s):
  • Christian Schubert

    ()

Schumpeter’s and Hayek’s view of market coordination as being not about efficiency, but about endogenous change and never-ending discovery has been increasingly recognized even by the mainstream of economics. Underlying this view is the notion of creative learning agents who bring about novelty. We argue that apart from the challenges it poses for positive theorizing, novelty (be it technological, institutional or commercial) also has a complex normative dimension that standard welfare economics is unsuited to deal with. We show that welfare economics has to be reconstructed on the basis of evolutionary-naturalistic insights into the way human agents bring about, value and respond to novelty-induced change.

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File URL: http://hdl.handle.net/10.1007/s00191-011-0257-x
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Article provided by Springer in its journal Journal of Evolutionary Economics.

Volume (Year): 22 (2012)
Issue (Month): 3 (July)
Pages: 585-619

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Handle: RePEc:spr:joevec:v:22:y:2012:i:3:p:585-619
DOI: 10.1007/s00191-011-0257-x
Contact details of provider: Web page: http://www.springer.com

Order Information: Web: http://www.springer.com/economics/journal/191/PS2

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