Castellacci, Fulvio (2011): Theoretical models of heterogeneity, growth and competitiveness: insights from the mainstream and evolutionary economics paradigms. Forthcoming in: (2011)
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This paper presents a survey of theoretical models of heterogeneity, growth and competitiveness. We compare two main theoretical traditions, evolutionary economics and mainstream heterogeneity models, in order to investigate whether the incorporation of heterogeneous agents has made the recent wave of mainstream models more similar to the evolutionary modelling style and results. The results of our survey exercise can be summarized as follows. On the one hand, we observe some increasing similarities and converging aspects between the evolutionary and the mainstream approaches to the study of heterogeneity. On the other hand, however, there are still some fundamental differences between them, which mainly relate to the distinct set of theoretical assumptions and methodological frameworks in which these heterogeneity models are set up and rooted. In short, the evolutionary approach emphasizes the complexities of the growth process and makes an effort to provide a realistic description of it, whereas the mainstream approach does instead follow a modelling methodology that emphasizes the analytical power and tractability of the formalization, even if that implies a somewhat simplified and less realistic description of the growth process.
|Item Type:||MPRA Paper|
|Original Title:||Theoretical models of heterogeneity, growth and competitiveness: insights from the mainstream and evolutionary economics paradigms|
|Keywords:||Heterogeneity models; economic growth; international trade; industrial dynamics|
|Subjects:||L - Industrial Organization > L0 - General
O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development
F - International Economics > F0 - General
|Depositing User:||Fulvio Castellacci|
|Date Deposited:||20. Dec 2010 19:31|
|Last Modified:||16. Feb 2013 09:49|
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