Evolutionary thoughts on economic growth

Evolutionary thoughts on economic growth - Evolutionary...

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Unformatted text preview: Evolutionary thoughts on economic growth 39. What is the assumed behaviour of firms in evolutionary theory? Economic selection as the counterpart to natural selection – firms with better strategies will grow and survive over time whereas firms with worse strategies will die out over time – the functioning of selection can also be affected by the economic system / institutions 40. Why is heterogeneity a central assumption in evolutionary theory? Heterogeneity between economic agents or individuals (vs. neoclassical assumption of representative agent)The economic agents are different. When we look at the economic growth side ; Economic selection as the counterpart to natural selection – firms with better strategies will grow and survive over time whereas firms with worse strategies will die out over time – the functioning of selection can also be affected by the economic system / institutions Heterogeneity between economic agents or economic units, be it firms , consumers, countries...
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This note was uploaded on 03/31/2010 for the course ECONOMICS 322 taught by Professor H during the Spring '08 term at Kadir Has Üniversitesi.

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