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Evolutionary Micro-dynamics and Changes in the Economic Structure

  • André Lorentz
  • Maria Savona

The paper develops a growth model with evolutionary micro–founded structural change. The model endogenises both technical change and changes in final and intermediate demand as affecting macro-economic growth, through the structural change of the economy. The aim is to formally account for the empirical stylised fact of the changes in the sectoral structure of the economy which have led to the growth of ser-vices in most advanced countries over the last decades. At the meso-macro level of analysis, we investigate whether the structural changes leading to the growth of services are mainly demand-led, both in terms of final consumption and intermediate demand. At the micro-level of analysis, we explore whether demand constraints affect the degree of exploitation of technological opportunities. The simulated results are based on the use of the actual Input–Output coefficients in the case of Germany. Four scenarios have been identified, which account for the effects of a set of key parameters on the changes in the structure of the economy.

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Paper provided by Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy in its series LEM Papers Series with number 2006/28.

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Date of creation: 03 Nov 2006
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Handle: RePEc:ssa:lemwps:2006/28
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  1. repec:dgr:tuecis:0008 is not listed on IDEAS
  2. Kox, Henk L.M. & Rubalcaba, Luis, 2007. "Analysing the contribution of business services to European economic growth," MPRA Paper 2003, University Library of Munich, Germany.
  3. Michael Peneder & Serguei Kaniovski & Bernhard Dachs, . "What Follows Tertiarisation? Structural Change and the Role of Knowledge-based Services," WIFO Working Papers 146, WIFO.
  4. Maria Savona & André Lorentz, 2005. "Demand and Technology Determinants of Structural Change and Tertiarisation: An Input-Output Structural Decomposition Analysis for four OECD Countries," LEM Papers Series 2005/25, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  5. G. Silverberg & B. Verspagen, 1995. "Evolutionary Theorizing on Economic Growth," Working Papers wp95078, International Institute for Applied Systems Analysis.
  6. Parrinello, Sergio, 2004. "The service economy revisited," Structural Change and Economic Dynamics, Elsevier, vol. 15(4), pages 381-400, December.
  7. Schettkat, Ronald & Yocarini, Lara, 2006. "The shift to services employment: A review of the literature," Structural Change and Economic Dynamics, Elsevier, vol. 17(2), pages 127-147, June.
  8. Giovanni Dosi & Christopher Freeman & Richard Nelson & Gerarld Silverberg & Luc Soete (ed.), 1988. "Technical Change and Economic Theory," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1988, August.
  9. Giulio Cainelli & Rinaldo Evangelista & Maria Savona, 2006. "Innovation and economic performance in services: a firm-level analysis," Cambridge Journal of Economics, Oxford University Press, vol. 30(3), pages 435-458, May.
  10. repec:dgr:tuecis:0213 is not listed on IDEAS
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