TY - JOUR
T1 - Heterogeneity, competition, and macroeconomic dynamics
AU - Chiaromonte, Francesca
AU - Dosi, Giovanni
N1 - Funding Information:
Lengthy discussions with D. Lane, M. Lippi, R. Salvatore, and L. Orsenigo have helped along various stages of this work. We thank four anonymous referees for their helpful comments. One of us (G.D.) gratefully acknowledges the support of the Italian National Research Council (CNR).
PY - 1993/6
Y1 - 1993/6
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.
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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 -