Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/89274
Authors: 
Ciarli, Tommaso
Lorentz, André
Savona, Maria
Valente, Marco
Year of Publication: 
2008
Series/Report no.: 
LEM Working Paper Series 2008/08
Abstract: 
We propose a theoretical model/framework for the analysis of the concomitant effects of structural changes in both production and consumption, on long run economic growth and income distribution. To accomplish with such a broad aim, we develop an evolutionary model with agentbased microfoundations. At the core of the model we take into account: (i) firmlevel organisational structure and technological changes; (ii) the impact of technology and organisation on the structure of earnings and income of workers/consumers; and (iii) the consequent changes in consumption patterns. The model thus articulates the links between production and organisation structures on the supply side, and the endogenous evolution of income distribution and consumption patterns on the demand side. We first analyse the model's properties, via numerical simulations, for a given setting of the structural conditions; we graphically show that the main determinants of endogenous economic growth and takeoff are the structural variables. We then analyse the space of the parameters that determine the structural conditions; simplified scenarios are identified via numerical simulations, in which patterns of aggregate growth are obtained as an emerging property of different structures of firms' organisation and production, functional composition of employment, income distribution and patterns of consumption.
Subjects: 
structural change
consumption
earnings distribution
growth
JEL: 
O12
J31
L23
D11
O41
Document Type: 
Working Paper

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