History Dependence in the Economy. A Review of the Literature

Revista de Economia del Rosario, Vol. 4, No. 1, 2001

24 Pages Posted: 6 Sep 2006

See all articles by Alejandro Gaviria

Alejandro Gaviria

Universidad de los Andes, Colombia - Department of Economics

Abstract

This paper presents a review on the concept of history dependence and time irreversibility in the economic literature. It presents an inventory of artificial examples where random events affect final outcomes and history cannot be reduced to the deliverer of the inevitable. It focuses mainly on recent examples and applications that, although not necessarily better than their predecessors, allow a better understanding of the mechanisms whereby history leaves its imprint. The paper reviews deterministic and stochastic models, presents some empirical illustrations and draws a few general conclusions.

Keywords: History dependence, Economic modelling

JEL Classification: C59, N01

Suggested Citation

Gaviria, Alejandro, History Dependence in the Economy. A Review of the Literature. Revista de Economia del Rosario, Vol. 4, No. 1, 2001, Available at SSRN: https://ssrn.com/abstract=928511

Alejandro Gaviria (Contact Author)

Universidad de los Andes, Colombia - Department of Economics ( email )

Carrera 1a No. 18A-10
Santafe de Bogota, AA4976
Colombia

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