Schumpeterian economic dynamics as a quantifiable minimum model of evolution Export

@article{citeulike:5836187, abstract = {We propose a simple quantitative model of Schumpeterian economic dynamics. New goods and services are endogenously produced through combinations of existing goods. As soon as new goods enter the market they may compete against already existing goods, in other words new products can have destructive effects on existing goods. As a result of this competition mechanism existing goods may be driven out from the market - often causing cascades of secondary defects (Schumpeterian gales of destruction). The model leads to a generic dynamics characterized by phases of relative economic stability followed by phases of massive restructuring of markets - which could be interpreted as Schumpeterian business `cycles'. Model timeseries of product diversity and productivity reproduce several stylized facts of economics timeseries on long timescales such as GDP or business failures, including non-Gaussian fat tailed distributions, volatility clustering etc. The model is phrased in an open, non-equilibrium setup which can be understood as a self organized critical system. Its diversity dynamics can be understood by the time-varying topology of the active production networks.}, archivePrefix = {arXiv}, author = {Thurner, Stefan and Klimek, Peter and Hanel, Rudolf}, citeulike-article-id = {5836187}, citeulike-linkout-0 = {http://arxiv.org/abs/0909.3482}, citeulike-linkout-1 = {http://arxiv.org/pdf/0909.3482}, day = {18}, eprint = {0909.3482}, keywords = {a, as, dynamics, economic, evolution, minimum, model, of, quantifiable, schumpeterian}, month = {Sep}, posted-at = {2009-09-24 17:31:17}, priority = {2}, title = {Schumpeterian economic dynamics as a quantifiable minimum model of evolution}, url = {http://arxiv.org/abs/0909.3482}, year = {2009} }

TY - JOUR ID - citeulike:5836187 L3 - citeulike-article-id:5836187 N2 - We propose a simple quantitative model of Schumpeterian economic dynamics. New goods and services are endogenously produced through combinations of existing goods. As soon as new goods enter the market they may compete against already existing goods, in other words new products can have destructive effects on existing goods. As a result of this competition mechanism existing goods may be driven out from the market - often causing cascades of secondary defects (Schumpeterian gales of destruction). The model leads to a generic dynamics characterized by phases of relative economic stability followed by phases of massive restructuring of markets - which could be interpreted as Schumpeterian business `cycles'. Model timeseries of product diversity and productivity reproduce several stylized facts of economics timeseries on long timescales such as GDP or business failures, including non-Gaussian fat tailed distributions, volatility clustering etc. The model is phrased in an open, non-equilibrium setup which can be understood as a self organized critical system. Its diversity dynamics can be understood by the time-varying topology of the active production networks. TI - Schumpeterian economic dynamics as a quantifiable minimum model of evolution KW - a KW - as KW - dynamics KW - economic KW - evolution KW - minimum KW - model KW - of KW - quantifiable KW - schumpeterian AU - Thurner, Stefan AU - Klimek, Peter AU - Hanel, Rudolf PY - 2009/Sep/18/ UR - http://arxiv.org/abs/0909.3482 ER -