Natural Selection and the Origin of Economic Growth


Book Description

This research develops an evolutionary growth theory that captures the interplay between the evolution of mankind and economic growth since the emergence of the human species. This unified theory encompasses the observed evolution of population, technology and income per capita in the long transition from an epoch of Malthusian stagnation to sustained economic growth. The theory suggests that prolonged economic stagnation prior to the transition to sustained growth stimulated natural selection that shaped the evolution of the human species, whereas the evolution of the human species was the origin of the take-off from an epoch of stagnation to sustained growth.




Essays on Genetic Evolution and Economics


Book Description

Ever since Charles Darwin published The Origin of Species in 1859, genetic evolutionary theory has increasingly served as the foundation for fields that deal with organisms that arose by natural selection. This thesis argues that economic theory should integrate with Darwinian theory through the creation of a "genetic evolutionary economics". The promise of genetic evolutionary economics is a better understanding of human nature and, consequently, a more accurate and comprehensive economic science. Economic theory rests on a set of assumptions about human nature. These economic axioms concern human genes, but there is no explicit connection between genetic evolution and economic theory. As a result, human behavior and economic predictions of that behavior diverge in a variety of important settings. Why, for example, do most people save too little for the future when economics assumes that they will save enough? Chapter 2 discusses the difficulties inherent in the standard economic approach. Natural selection theory, the chapter argues, is the best tool for refining the axioms of economics. Genetic evolutionary economics allows the derivation of parameters that are intractable with standard economic techniques. There is, for instance, an ancient debate within economics about the role of self-interest in human affairs. Chapter 3 builds a genetic evolutionary model relevant to this issue, and concludes that a Darwinian lens removes many of the apparent paradoxes. Genetic evolutionary economics is a scientific endeavor. As such, it produces specific, testable hypotheses concerning behavior in economically relevant situations. Chapter 4 reports on a theoretical and experimental investigation of gift giving. A genetic evolutionary model organizes the existing data on gift giving and makes novel, testable predictions. Laboratory experiments, performed to test the theory, confirm the evolutionary model's predictions.




A Culture of Growth


Book Description

Why Enlightenment culture sparked the Industrial Revolution During the late eighteenth century, innovations in Europe triggered the Industrial Revolution and the sustained economic progress that spread across the globe. While much has been made of the details of the Industrial Revolution, what remains a mystery is why it took place at all. Why did this revolution begin in the West and not elsewhere, and why did it continue, leading to today's unprecedented prosperity? In this groundbreaking book, celebrated economic historian Joel Mokyr argues that a culture of growth specific to early modern Europe and the European Enlightenment laid the foundations for the scientific advances and pioneering inventions that would instigate explosive technological and economic development. Bringing together economics, the history of science and technology, and models of cultural evolution, Mokyr demonstrates that culture—the beliefs, values, and preferences in society that are capable of changing behavior—was a deciding factor in societal transformations. Mokyr looks at the period 1500–1700 to show that a politically fragmented Europe fostered a competitive "market for ideas" and a willingness to investigate the secrets of nature. At the same time, a transnational community of brilliant thinkers known as the “Republic of Letters” freely circulated and distributed ideas and writings. This political fragmentation and the supportive intellectual environment explain how the Industrial Revolution happened in Europe but not China, despite similar levels of technology and intellectual activity. In Europe, heterodox and creative thinkers could find sanctuary in other countries and spread their thinking across borders. In contrast, China’s version of the Enlightenment remained controlled by the ruling elite. Combining ideas from economics and cultural evolution, A Culture of Growth provides startling reasons for why the foundations of our modern economy were laid in the mere two centuries between Columbus and Newton.




An Evolutionary Theory of Economic Change


Book Description

This book contains the most sustained and serious attack on mainstream, neoclassical economics in more than forty years. Nelson and Winter focus their critique on the basic question of how firms and industries change overtime. They marshal significant objections to the fundamental neoclassical assumptions of profit maximization and market equilibrium, which they find ineffective in the analysis of technological innovation and the dynamics of competition among firms. To replace these assumptions, they borrow from biology the concept of natural selection to construct a precise and detailed evolutionary theory of business behavior. They grant that films are motivated by profit and engage in search for ways of improving profits, but they do not consider them to be profit maximizing. Likewise, they emphasize the tendency for the more profitable firms to drive the less profitable ones out of business, but they do not focus their analysis on hypothetical states of industry equilibrium. The results of their new paradigm and analytical framework are impressive. Not only have they been able to develop more coherent and powerful models of competitive firm dynamics under conditions of growth and technological change, but their approach is compatible with findings in psychology and other social sciences. Finally, their work has important implications for welfare economics and for government policy toward industry.




Economic Growth and Evolution


Book Description

This paper presents a quantitative analysis of the model developed by Galor and Moav [Galor, Oded and Omer Moav (2002) Natural selection and the origin of economic growth. Quarterly Journal of Economics 117(4), 1133-1191] in which agents vary genetically in their preference for quality and quantity of children. The simulation produces a pattern of income and population growth that resembles the period of Malthusian stagnation before the Industrial Revolution and the take-off into a modern growth era. We also investigate the stability of the modern growth era as an absorbing state of the model under the introduction of a strongly quantity-preferring genotype. We show that, given the absence of a scale effect of population in the model, the economy can regress to a Malthusian state under this change in the initial distribution of genotypes.




Human Evolution, Economic Progress and Evolutionary Failure


Book Description

Cover -- Title -- Copyright -- Dedication -- Contents -- List of tables -- List of boxes -- List of appendices -- Foreword -- Acknowledgements -- Prologue -- 1 Introduction and context -- PART I Human evolution -- 2 Synoptic view of human evolution via natural selection -- 3 Human evolution: beyond the physical -- PART II Economic progress -- 4 Population growth and economic progress: pre-industrial through the 1940s -- 5 Progress since 1950 and the emerging challenges -- PART III Understanding and tackling evolutionary failure -- 6 The idea of evolutionary failure -- 7 Addressing evolutionary failure: the way forward -- Epilogue: hope for humanity -- References and further reading -- Index.










The Handbook of Historical Economics


Book Description

The Handbook of Historical Economics guides students and researchers through a quantitative economic history that uses fully up-to-date econometric methods. The book's coverage of statistics applied to the social sciences makes it invaluable to a broad readership. As new sources and applications of data in every economic field are enabling economists to ask and answer new fundamental questions, this book presents an up-to-date reference on the topics at hand. Provides an historical outline of the two cliometric revolutions, highlighting the similarities and the differences between the two Surveys the issues and principal results of the "second cliometric revolution" Explores innovations in formulating hypotheses and statistical testing, relating them to wider trends in data-driven, empirical economics