Welfare Creation and Destruction in a Schumpeterian World
Economic change, while promoting innovation and growth, at the same time generates "gales of creative destruction". It is still largely unclear what this concept implies for the task of assessing welfare (and, correspondingly, the need for and scope of policy-making) in a novelty-generating, knowledge-based economy. Is novelty desirable per se? Is a rise of living standards due to innovation always worth the risks involved? Standard welfare economics is inherently incapable of answering these questions. By examining Joseph Schumpeter's explicit and implicit reasoning on welfare and linking his thoughts to recent ideas, within normative economics, on how to redefine "well-being" when preferences are variable and inconsistent, we argue that in an evolving economy, well-being should not be conceptualized in static preference-satisfaction terms, but rather in partly procedural terms of "effective preference learning".
|Date of creation:||Nov 2009|
|Date of revision:|
|Contact details of provider:|| Postal: Deutschhausstrasse 10, 35032 Marburg|
Web page: http://www.uni-marburg.de/fb19/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ulrich Witt, .
"How Evolutionary is Schumpeter's Theory of Economic Development?,"
Papers on Economics and Evolution
2001-12, Philipps University Marburg, Department of Geography.
- Ulrich Witt, 2002. "How Evolutionary Is Schumpeter'S Theory Of Economic Development?," Industry and Innovation, Taylor & Francis Journals, vol. 9(1-2), pages 7-22.
- Peter E. Earl & Jason Potts, 2004. "The market for preferences," Cambridge Journal of Economics, Oxford University Press, vol. 28(4), pages 619-633, July.
- U. Witt & C. Schubert, 2008.
"Constitutional Interests in the Face of Innovations: How Much Do We Need to Know about Risk Preferences?,"
Papers on Economics and Evolution
2008-03, Philipps University Marburg, Department of Geography.
- Ulrich Witt & Christian Schubert, 2008. "Constitutional interests in the face of innovations: how much do we need to know about risk preferences?," Constitutional Political Economy, Springer, vol. 19(3), pages 203-225, September.
- Ursula Backhaus, 2002. "Seventh Chapter Of The Theory Of Economic Development," Industry and Innovation, Taylor & Francis Journals, vol. 9(1-2), pages 93-145.
- Bruno S. Frey & Alois Stutzer, 2002.
"What Can Economists Learn from Happiness Research?,"
Journal of Economic Literature,
American Economic Association, vol. 40(2), pages 402-435, June.
- Bruno S. Frey & Alois Stutzer, . "What can Economists Learn from Happiness Research?," IEW - Working Papers 080, Institute for Empirical Research in Economics - University of Zurich.
- Bruno S. Frey & Alois Stutzer, 2001. "What Can Economists Learn from Happiness Research?," CESifo Working Paper Series 503, CESifo Group Munich.
- Shionoya,Yuichi, 1997. "Schumpeter and the Idea of Social Science," Cambridge Books, Cambridge University Press, number 9780521430340, December.
- Joseph A. Schumpeter, 1949. "English Economists and the State-Managed Economy," Journal of Political Economy, University of Chicago Press, vol. 57, pages 371.
- Soete Luc & Weel Bas ter, 1999. "Schumpeter and the Knowledge-Based Economy: On Technology and Competition Policy," Research Memorandum 004, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
- Fabrizio Zilibotti, 2007. "ï¿½Economic Possibilities for Our Grandchildrenï¿½ 75 Years after: A Global Perspective," IEW - Working Papers 344, Institute for Empirical Research in Economics - University of Zurich.
- Mauro Boianovsky & Hans-Michael Trautwein, 2010.
"Schumpeter on unemployment,"
Journal of Evolutionary Economics,
Springer, vol. 20(2), pages 233-263, April.
- Mauro Boianovsky & Hans-Michael Trautwein, 2008. "Schumpeter on unemployment," Anais do XXXVI Encontro Nacional de Economia [Proceedings of the 36th Brazilian Economics Meeting] 200807181726240, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
- Marc Fleurbaey & Maurice Salles & John Weymark, 2008. "Justice, Political Liberalism and Utilitarianism," Post-Print hal-00246415, HAL.
- Robert Sugden, 2004. "The Opportunity Criterion: Consumer Sovereignty Without the Assumption of Coherent Preferences," American Economic Review, American Economic Association, vol. 94(4), pages 1014-1033, September.
- Markus C. Becker & Thorbj¯rn Knudsen, 2002. "Schumpeter 1911: Farsighted Visions on Economic Development," American Journal of Economics and Sociology, Wiley Blackwell, vol. 61(2), pages 387-403, 04.
- Horst Hanusch & Andreas Pyka, 2005.
"Principles of Neo-Schumpeterian Economics,"
Discussion Paper Series
278, Universitaet Augsburg, Institute for Economics.
- N. De Liso & G. Filatrella, 1999. "On technology competition," Working Papers 337, Dipartimento Scienze Economiche, Universita' di Bologna.
- Jan Fagerberg, 2003.
"Schumpeter and the revival of evolutionary economics: an appraisal of the literature,"
Working Papers Archives
2003001, Centre for Technology, Innovation and Culture, University of Oslo.
- Jan Fagerberg, 2003. "Schumpeter and the revival of evolutionary economics: an appraisal of the literature," Journal of Evolutionary Economics, Springer, vol. 13(2), pages 125-159, 04.
- Witt, Ulrich, 1996. "Innovations, Externalities and the Problem of Economic Progress," Public Choice, Springer, vol. 89(1-2), pages 113-30, October.
- Schumpeter, Joseph A., 1947. "The Creative Response in Economic History," The Journal of Economic History, Cambridge University Press, vol. 7(02), pages 149-159, November.
- John E. Elliott, 1980. "Marx and Schumpeter on Capitalism's Creative Destruction: A Comparative Restatement," The Quarterly Journal of Economics, Oxford University Press, vol. 95(1), pages 45-68.
- Ulrich Witt, 2003. "Economic policy making in evolutionary perspective," Journal of Evolutionary Economics, Springer, vol. 13(2), pages 77-94, 04.
- Richard Layard, 2006. "Happiness and Public Policy: a Challenge to the Profession," Economic Journal, Royal Economic Society, vol. 116(510), pages C24-C33, 03.
When requesting a correction, please mention this item's handle: RePEc:esi:evopap:2009-14. 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: (Christoph Mengs)
If references are entirely missing, you can add them using this form.