IDEAS home Printed from https://ideas.repec.org/p/fce/doctra/1412.html
   My bibliography  Save this paper

Novelty,Hysteresis,and Growth

Author

Listed:
  • Mario Amendola

    (Università degli studi di Roma la Sapienza)

  • Jean Luc Gaffard

    (OFCE sciences-po, Skema Busioness School, Univercity of Nice Sophie Antipolis)

Abstract

Novelty and hysteresis are the main engines of economic evolution. However, they are also at the origin of co-ordination issues, as the consequences of any innovative choice can never be fully expected. Thus, there is no sense in analysing economic change as an intertemporal equilibrium with rational expectations. Not only growth and fluctuations cannot be dissociated, but there is no long-term trend that would be independent from what happens in the short- term. The explicit consideration of essential evolutionary phenomena like novelty and hysteresis help a clearer understanding of some important episodes of contemporaneous economic history. The periods considered are characterized by crises and structural changes, and it is exactly when important disturbances affect the functioning of the economies that the relevant features of their behaviour come to the surface and hence the right interpretations of the phenomena taking place, with the adequate policy implications, can be formulated

Suggested Citation

  • Mario Amendola & Jean Luc Gaffard, 2014. "Novelty,Hysteresis,and Growth," Documents de Travail de l'OFCE 2014-12, Observatoire Francais des Conjonctures Economiques (OFCE).
  • Handle: RePEc:fce:doctra:1412
    as

    Download full text from publisher

    File URL: http://www.ofce.sciences-po.fr/pdf/dtravail/WP2014-12.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Mario Amendola & Jean Luc Gaffard & Fabricio Patriarca, 2013. "Inequality,debt and taxation:the perverse relation between the productive and the non-productive assets of the economy," Documents de Travail de l'OFCE 2013-21, Observatoire Francais des Conjonctures Economiques (OFCE).
    2. Nicholas Georgescu-Roegen, 1950. "The Theory of Choice and the Constancy of Economic Laws," The Quarterly Journal of Economics, Oxford University Press, vol. 64(1), pages 125-138.
    3. Peter Howitt, 1994. "Adjusting to Technological Change," Canadian Journal of Economics, Canadian Economics Association, vol. 27(4), pages 763-775, November.
    4. Axel Leijonhufvud, 2000. "Macroeconomic Instability and Coordination," Books, Edward Elgar Publishing, number 750, April.
    5. Tobin, James, 1972. "Inflation and Unemployment," American Economic Review, American Economic Association, vol. 62(1), pages 1-18, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:fce:doctra:1412. 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: (Francesco Saraceno). General contact details of provider: http://edirc.repec.org/data/ofcspfr.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.