Evolution and the Growth Process: Natural Selection of Entrepreneurial Traits
Brown University - Department of Economics; Centre for Economic Policy Research (CEPR); Massachusetts Institute of Technology (MIT) - School of Humanities, Arts, and Social Sciences, Department of Economics
Brown University - Department of Economics; National Bureau of Economic Research (NBER)
CEPR Discussion Paper No. DP8377
This research suggests that the evolution of entrepreneurial spirit played a significant role in the process of economic development and the dynamics of inequality within and across societies. The study argues that entrepreneurial spirit evolved non-monotonically in the course of human history. In early stages of development, risk-tolerant, growth promoting traits generated an evolutionary advantage and their increased representation accelerated the pace of technological progress and the process of economic development. In mature stages of development, however, risk-averse traits gained an evolutionary advantage, diminishing the growth potential of advanced economies and contributing to convergence in economic growth across countries.
Number of Pages in PDF File: 31
Keywords: Evolution, Growth, Natural Selection, Risk Aversion, Technological Progress
JEL Classification: J11, J13, O11, O14, O33, O40working papers series
Date posted: May 19, 2011
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