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 language | English (US) |
|---|---|
| Pages (from-to) | 39-63 |
| Number of pages | 25 |
| Journal | Structural Change and Economic Dynamics |
| Volume | 4 |
| Issue number | 1 |
| DOIs | |
| State | Published - Jan 1 1993 |
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All Science Journal Classification (ASJC) codes
- Economics and Econometrics
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Heterogeneity, competition, and macroeconomic dynamics. / Chiaromonte, Francesca; Dosi, Giovanni.
In: Structural Change and Economic Dynamics, Vol. 4, No. 1, 01.01.1993, p. 39-63.Research output: Contribution to journal › Article
TY - JOUR
T1 - Heterogeneity, competition, and macroeconomic dynamics
AU - Chiaromonte, Francesca
AU - Dosi, Giovanni
PY - 1993/1/1
Y1 - 1993/1/1
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=0006568739&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0006568739&partnerID=8YFLogxK
U2 - 10.1016/0954-349X(93)90004-4
DO - 10.1016/0954-349X(93)90004-4
M3 - Article
AN - SCOPUS:0006568739
VL - 4
SP - 39
EP - 63
JO - Structural Change and Economic Dynamics
JF - Structural Change and Economic Dynamics
SN - 0954-349X
IS - 1
ER -