An Evolutionary Model of Economic Growth

Polterovich, Victor and Henkin, Gennadi (1990): An Evolutionary Model of Economic Growth. Published in: Matekon , Vol. 26, No. 3 (1990): pp. 44-64.

Abstract

We propose an evolutionary equation and develop an asymptotic theory that generalize results obtained in Polterovich, Khenkin, 1988. It is shown that, as a result of interaction between innovation and imitation, the shape of the efficiency distribution curve of technologies eventually stabilizes; this curve moves with almost constant speed; neither the shape nor the speed asymptotically depend on initial conditions. A growth model is suggested, and it is proved that, in the process of economic growth, the evolution of distribution of capacity by efficiency levels approximately follows the generalized evolutionary equation. Modifications of the growth model are discussed.

• Item Type: MPRA Paper
• Language: English
• Keywords: imitation; innovation; evolutionary equation; wave solutions; stability; economic growth; investment; distribution of production capacities
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences ; Diffusion Processes

References

V. M. Polterovich and G.M. Khenkin, "Evoliutsionnaia model' vzaimodeistviia protsessov sozdaniia i zaimstvovaniia tckhnologii," Ekonomika i mat metody, 1988, vol. 24, no. 6.

K. Iwai, "Schumpeterian dynamics. Part II. Technological progress, firm growth, and 'economic selection'," Econ. Behavior and Organization, 1984, vol. 5, nos. 3-4.

V. M. Polterovich and G.M. Khenkin, Diffuziia tekhnologii i ekonomicheskii rost, Moscow TsEMI AN SSSR, 1988.

E. A. Coddington and N. Levinson, Theory of Ordinary Differential Equations, New York, McGraw-Hill, 1955.