55 Scopus citations

Abstract

The paper presents an evolutionary model in which certain regularities in macroeconomic dynamics, such as in income and labour productivity growth, are the outcome of far-from-equilibrium interactions among heterogeneous, boundedly rational, agents. Relatively ordered patterns of change emerge as a collective self-organizing property of the system, while individual agents are always undergoing processes of mistake-ridden innovation, imitation, and market selection. Technological dynamics is endogenous and the rate of innovation is primarily constrained by the abilities of agents to exploit notional innovative opportunities; these are generally well in excess of what agents are able to master. Innovations influence aggregate dynamics via (i) time-consuming diffusion among producers and users, and (ii) associated demand impulses. Microheterogeneity has a paramount importance for the aggregate behaviour of the system.

Original languageEnglish (US)
Pages (from-to)39-63
Number of pages25
JournalStructural Change and Economic Dynamics
Volume4
Issue number1
DOIs
StatePublished - Jun 1993

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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