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Evolution and the Growth Process: Natural Selection of Entrepreneurial Traits

Author

Listed:
  • Oded Galor

    (Department of Economics, Brown University)

  • Stelios Michalopoulos

    (Tufts University and the Institute for Advanced Study)

Abstract

This research suggests that the 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.

Suggested Citation

  • Oded Galor & Stelios Michalopoulos, 2011. "Evolution and the Growth Process: Natural Selection of Entrepreneurial Traits," Economics Working Papers 0098, Institute for Advanced Study, School of Social Science.
    • Handle: RePEc:ads:wpaper:0098
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    More about this item

    Keywords

    Risk Aversion; Growth; Technological Progress; Evolution; Natural Selection;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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