Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/32644
Authors: 
Lorentz, André
Year of Publication: 
2009
Series/Report no.: 
Papers on economics and evolution 0901
Abstract: 
This paper proposes to identify the micro-level sources for the dynamic increasing returns occurring at an aggregate level. The paper reverts to a micro model of technological change in-line with the evolutionary literature on industrial dynamics. The data generated through numerical simulations are used to identify the sources of increasing returns as measured by the Kaldor-Verdoorn Law. In this respect we also aim to provide some plausible micro-foundations to this Law. The paper shows that: (i) Dynamic increasing returns appear as an emergent property of the model; (ii) micro-characteristics of technical change, as the amplitude and the frequency of changes, as well as selection mechanisms significantly shape these increasing returns.
Subjects: 
Dynamic increasing returns
Kaldor-Verdoorn Law
technical change
evolutionary modelling
JEL: 
B52
L11
O31
O33
O40
Document Type: 
Working Paper

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