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)
IZA Discussion Paper No. 6327
This research suggests that a Darwinian 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: risk aversion, growth, technological progress, evolution, natural selection
JEL Classification: O11, O14, O33, O40, J11, J13working papers series
Date posted: February 12, 2012
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo4 in 0.375 seconds