IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Aspects of growth, structural change, and employment: A Schumpeterian perspective

  • Giersch, Herbert
Registered author(s):

    This paper aims to throw some light on problems of growth and employment that appear to have been somewhat neglected in the recent development of mainstream economics. As the subtitle suggests we shall make use of a framework of thought that might be called Schumpeterian, in honor of Joseph Schumpeter, who taught in Vienna and Bonn as well as at Yale and Harvard, and who deserves - as some people here in Kiel think - more credit than he usually receives in the shadow of Keynes. This system of thought emphasizes - a medium run time horizon, as distinct from the Keynesian short run and the classical, neoclassical, or Marxian long run; - the cyclical nature of capitalist development, rather than the notions of short run or long run equilibrium, as a basic postulate; the catallactic features of activity in the private sector and hence the information and coordination problems arising in decentralized systems - in contrast to a view which Hicks calls plutologist or social accounting Keynesianism (Hicks 1976); - active or dynamic competition of all sorts (Schumpeter's creative destruction) among entrepreneurs, whom Schumpeter (1912) defined as everyone who carries out new combinations; - autonomy, spontaneity, curiosity, experimenting, and-risk taking as essentials of human action under competitive conditions in business as well as in research - in contrast to the notion of perfect competition and its implicit situational determinism (Latsis 1976); - supply activities rather than demand mechanics, such as demand induced (accelerator) investments or multiplier processes. This approach certainly is supply oriented, in contrast to the demand bias of short run macro-economics. Effective demand is taken to be a consequence (multiplier effect) of private supply activities, i.e. of autonomous investments. A shortfall of demand can be explained in this framework as a consequence of unfavorable conditions for autonomous investments, including - a shortage of technological breakthroughs, - a shortage of factors complementary to investments, - institutional constraints, - a shortage of entrepreneurs, and - a distortion of relative prices depressing profits and profit expectations.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://econstor.eu/bitstream/10419/47127/1/01085164X.pdf
    Download Restriction: no

    Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 89.

    as
    in new window

    Length:
    Date of creation: 1979
    Date of revision:
    Handle: RePEc:kie:kieliw:89
    Contact details of provider: Postal: Kiellinie 66, D-24105 Kiel
    Phone: +49 431 8814-1
    Fax: +49 431 85853
    Web page: http://www.ifw-kiel.de
    Email:


    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:kie:kieliw:89. 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: (Dieter Stribny)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.