Structural interactions and long run growth: An application of Experimental Design to Agent Based Models
We propose an agent-based computational model defining the following dimensions of structural change - organisation of production, technology of production, and product on the supply side, and income distribution and consumption patterns on the demand side - at the microeconomic level. We define ten different parameters to account for these five dimensions of structural change. Building on existing results we use a full factorial experimental design (DOE) to analyse the size and significance of the effect these parameters on output growth. We identify the aspects of structural change that have the strongest impact. We study the direct and indirect effects of the factors of structural change, and focus on the role of the interactions among the different factors and different aspects of structural change. We find that some aspects of structural change - income distribution, changes to production technology and the emergence of new sectors, - play a major role on output growth, while others -consumption shares, preferences, and the quality of goods, - play a rather minor role. Second, these major factors can radically modify the growth of an economy even when all other aspects experience no structural change. Third, different aspects of structural change strongly interact: the effect of a factor that influences a particular aspect of structural change varies radically for different degrees of structural change in other aspects. These results on the different aspects of structural change provide a number of insights on why regions starting from a similar level of output and with initial small differences grow so differently through time.
|Date of creation:||22 Mar 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.uni-marburg.de/fb19/
More information through EDIRC
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.:
- Gervais, Martin & Klein, Paul, 2010.
"Measuring consumption smoothing in CEX data,"
Journal of Monetary Economics,
Elsevier, vol. 57(8), pages 988-999, November.
- Gervais, Martin & Klein, Paul, 2009. "Measuring consumption smoothing in CEX data," Discussion Paper Series In Economics And Econometrics 0906, Economics Division, School of Social Sciences, University of Southampton.
- Kuznets, Simon, 1973.
"Modern Economic Growth: Findings and Reflections,"
American Economic Review,
American Economic Association, vol. 63(3), pages 247-58, June.
- Tommaso Ciarli & AndrÃ© Lorentz & Maria Savona & Marco Valente, 2008.
"The Effect of Consumption and Production Structure on Growth and Distribution. A Micro to Macro Model,"
Papers on Economics and Evolution
2008-13, Philipps University Marburg, Department of Geography.
- 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, 02.
- Patrick Llerena & André Lorentz, 2004. "Cumulative Causation and Evolutionary Micro-Founded Technical Change. On the Determinants of Growth rate Differences," Revue économique, Presses de Sciences-Po, vol. 55(6), pages 1191-1214.
- Alessio Moneta & Doris Entner & Patrik Hoyer & Alex Coad, 2010. "Causal Inference by Independent Component Analysis with Applications to Micro- and Macroeconomic Data," Jena Economic Research Papers 2010-031, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Dosi, G. & Marengo, L. & Pasquali, C., 2006.
"How much should society fuel the greed of innovators?: On the relations between appropriability, opportunities and rates of innovation,"
Elsevier, vol. 35(8), pages 1110-1121, October.
- Giovanni Dosi & Luigi Marengo & Corrado Pasquali, 2006. "How Much Should Society Fuel the Greed of Innovators? On the Relations between Appropriability, Opportunities and Rates of Innovation," LEM Papers Series 2006/17, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Allan G. B. Fisher, 1939. "Production, Primary, Secondary And Tertiary," The Economic Record, The Economic Society of Australia, vol. 15(1), pages 24-38, 06.
- Giulio Bottazzi & Marco Grazzi, 2007. "Wage structure in Italian Manufacturing firms," LEM Papers Series 2007/05, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- M. J. Andrews & S. Bradley & D. Stott & R. Upward, 2008. "Successful Employer Search? An Empirical Analysis of Vacancy Duration Using Micro Data," Economica, London School of Economics and Political Science, vol. 75(299), pages 455-480, 08.
- Amendola, Mario & Gaffard, Jean-Luc, 1998. "Out of Equilibrium," OUP Catalogue, Oxford University Press, number 9780198293804, March.
- Silvia Fabiani & Martine Druant & Ignacio Hernando & Claudia Kwapil & Bettina Landau & Claire Loupias & Fernando Martins & Thomas Mathä & Roberto Sabbatini & Harald Stahl & Ad Stokman, 2006.
"What Firms' Surveys Tell Us about Price-Setting Behavior in the Euro Area,"
International Journal of Central Banking,
International Journal of Central Banking, vol. 2(3), September.
- Fabiani, Silvia & Druant, Martine & Hernando, Ignacio & Kwapil, Claudia & Landau, Bettina & Loupias, Claire & Martins, Fernando & Matha, Thomas & Sabbatini, Roberto & Stahl, Harald & Stokman, Ad, 2006. "What Firms' Surveys Tell Us about Price-Setting Behavior in the Euro Area," MPRA Paper 808, University Library of Munich, Germany.
- Fabiani, Silvia & Druant, Martine & Hernando, Ignacio & Kwapil, Claudia & Landau, Bettina & Loupias, Claire & Martins, Fernando & Mathä, Thomas Y. & Sabbatini, Roberto & Stahl, Harald & Stokman, Ad C., 2005. "The pricing behaviour of firms in the euro area: new survey evidence," Working Paper Series 0535, European Central Bank.
- Simon Hall & Mark Walsh & Anthony Yates, 1997. "How do UK companies set prices?," Bank of England working papers 67, Bank of England.
- Giovanni Dosi & Giorgio Fagiolo & Andrea Roventini, 2008.
"Schumpeter Meeting Keynes: A Policy-Friendly Model of Endogenous Growth and Business Cycles,"
50/2008, University of Verona, Department of Economics.
- Dosi, Giovanni & Fagiolo, Giorgio & Roventini, Andrea, 2010. "Schumpeter meeting Keynes: A policy-friendly model of endogenous growth and business cycles," Journal of Economic Dynamics and Control, Elsevier, vol. 34(9), pages 1748-1767, September.
- Giovanni Dosi & Giorgio Fagiolo & Andrea Roventini, 2008. "Schumpeter Meeting Keynes: A Policy-Friendly Model of Endogenous Growth and Business Cycles," LEM Papers Series 2008/21, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Pier Saviotti & Jean Gaffard, 2008. "Preface for the special issue of JEE on ‘innovation, structural change and economic development’," Journal of Evolutionary Economics, Springer, vol. 18(2), pages 115-117, April.
- Jed Devaro, 2005. "Employer Recruitment Strategies and the Labor Market Outcomes of New Hires," Economic Inquiry, Western Economic Association International, vol. 43(2), pages 263-282, April.
- Alexander Coad & Rekha Rao, 2007.
"Firm Growth and R&D Expenditure,"
Papers on Economics and Evolution
2007-10, Philipps University Marburg, Department of Geography.
- Philip, Jung & Moritz, Kuhn, 2011. "The Era of the U.S.-Europe Labor Market Divide: What can we learn?," MPRA Paper 32322, University Library of Munich, Germany.
- Gallouj, Faiz & Weinstein, Olivier, 1997. "Innovation in services," Research Policy, Elsevier, vol. 26(4-5), pages 537-556, December.
- Aoki, Masanao & Yoshikawa, Hiroshi, 2002. "Demand saturation-creation and economic growth," Journal of Economic Behavior & Organization, Elsevier, vol. 48(2), pages 127-154, June.
- Dietrich, Andreas & Krüger, Jens, 2010. "Numerical Explorations of the Ngai-Pissarides Model of Growth and Structural Change," Darmstadt Discussion Papers in Economics 46865, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute of Economics (VWL).
When requesting a correction, please mention this item's handle: RePEc:esi:evopap:2012-06. 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.