Template-type: ReDIF-Paper 1.0
Author-Name: Lorentz, André
Author-Email: alorentz@unistra.fr
Author-Workplace-Name: Université de Strasbourg, BETA, Université de Lorraine, CNRS
Author-Name: Ciarli, Tommaso
Author-Email: ciarli@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, Maastricht University, and SPRU, University of Sussex
Author-Name: Savona, Maria
Author-Email: m.savona@sussex.ac.uk
Author-Workplace-Name: SPRU, University of Sussex
Author-Name:  Valente, Marco
Author-Email: marco.valente@univaq.it
Author-Workplace-Name: University of L’Aquila
Title: Structural transformations and cumulative causation towards an evolutionary 
	 micro-foundation of the Kaldorian growth model
Abstract: We derive the Kaldorian cumulative causation mechanism as an emergent
	 property of the dynamics generated by a micro-founded model. We build on
	 an evolutionary growth model which formalises the endogenous relations
	 between structural changes in the production, organisation and
	 functional composition of employment and of consumption patterns
	 (originally proposed by Ciarli et al, 2010). We discuss the main
	 transition dynamics to a self- sustained growth regime in a two-stage
	 growth pattern generated through the numerical simulations of the model.
	 We then show that these mechanisms lead to the emergence of a
	 Kaldor-Verdoorn law. Finally we show that the structure of demand shapes
	 the type of growth regime emerging from the endogenous structural
	 changes, fostering or hampering the emergence of the Kaldor Verdoorn
	 law. This depends on the endogenous income distribution and
	 heterogeneity in consumption behaviour
Classification-JEL: O14, O33, O41, L16, C63, E11
Keywords: Structural change, economic growth, final consumption, technological change,
	 cumulative causation, evolutionary economics, Kaldor-Verdoorn Law
Series: UNU-MERIT Working Papers
Creation-Date: 20220110
Number: 2022-001
File-URL: https://unu-merit.nl/publications/wppdf/2022/wp2022-001.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2022001