Microfoundations of Evolutionary Economics

ISBN-13: 9784431552666 / Angielski / Twarda / 2019 / 346 str.

Yoshinori Shiozawa; Kazuhisa Taniguchi; Masashi Morioka

Opis

This book provides for the first time the microfoundations of evolutionary economics. It enables the reader to grasp a new framework for economic analysis that is compatible with evolutionary processes. Any independent economics must contain a value theory (or price theory) and price and quantity adjustment processes. Evolutionary economics rightly and successfully concentrated its efforts on explaining evolutionary processes in technology and institutions. However, it did not have its own value theory and could not explain the workings of everyday economics processes, in which any evolutionary processes would take place. Our point of departure is myopic agents with strongly limited rationality and forecasting capacities (in extreme contrast to mainstream economics). We show how myopic agents, in a complex world, can produce a stable price system and observe how they can adjust their productions to the changes of demand flows. Agents behave without knowledge of the total process and they generate a stable economy as large as the global network of exchanges. This is a true wonder of the market mechanism. In contrast to mainstream general equilibrium theory, this wonder is finely explained without the help of an auctioneer or the concepts of demand and supply functions. With this book, evolutionary economics can claim to be an independent economics that can totally replace mainstream neoclassical economics."

Recenzje

"This book is an extensive study of a new aspect in economics: evolutionary economics. This is a central 'dogma' to better understanding economics and its evolution." (Monique Pontier, zbMATH 1490.91003, 2022)
"This book thoroughly investigates the principle of the 'real' economy. ... this book must be called a piece of laborious work that draws a clear line between Romanticism and Evolutionary Economics. ... this book goes beyond the scope of usual economic theory books." (Yoshio Inoue, Evolutionary and Institutional Economics Review, Vol. 18 (1), 2021)

Spis treści

Chapter 1: Microfoundations of Evolutionary Economics.- Chapter 2: A large Economic System with Minimally Rational Agents.- Chapter 3: The Basic Theory of Quantity Adjustment.- Chapter 4: Dynamic Properties of Quantity Adjustment Process under Demand Forecast Formed by a Moving Average of Past Demands.- Chapter 5: Extensions of Model Analysis of the Quantity Adjustment Process in Several Directions.- Chapter 6: Significance of Non-Linearity and Many Goods Models.- Chapter 7: Exchange and Arbitrage: Price, Evaluation and the Principle of Exchange

O autorze

Yoshinori Shiozawa: BSc (Kyoto University), MSc (Kyoto University), DEA (University of Nice). Worked as a Research Associate at the Department of Mathematics and at the Institute of Economic Research, Kyoto University, (Associate and Full) Professor at the Department of Economics and Graduate School for Creative Cities, Osaka City University, and Professor at the Department of Commerce, Chuo University. He was also the second President of the Japan Association for Evolutionary Economics. He is currently a Professor Emeritus (Osaka City University) and Fellow of the Japan Association for Evolutionary Economics. He was awarded the Suntory Prize for Social Sciences and Humanities in 1992 and the JAFEE Prize in 2016.

Masashi Morioka: BA, MA and PhD (Economics, all from Kyoto University). He is a member of the Japan Association for Evolutionary Economics and an associate editor of the Evolutionary and Institutional Economic Review. He is currently a Professor at the Faculty of International Relations, Ritsumeikan University.

Kazuhisa Taniguchi: BSc (Ritsumeikan University), PhD (Economics, Osaka Prefecture University). Worked as (an Associate and Full) Professor at the Faculty of Economics, Osaka Sangyo University, and as a Professor at the Faculty of Economics and Graduate School of Economics, Kindai University. He is currently a member of the Japan Association for Evolutionary Economics and a Lecturer (part-time) at Kindai University.

Blurb

This book provides for the first time the microfoundations of evolutionary economics, enabling the reader to grasp a new framework for economic analysis that is compatible with evolutionary processes. Any independent approach to economics must include a value theory (or price theory) and price and quantity adjustment processes. Evolutionary economics has rightly and successfully concentrated its efforts on explaining evolutionary processes in technology and institutions. However, it does not have its own value theory and is not capable of explaining the workings of everyday economics processes, in which any evolutionary process would take place.

Our point of departure is the addition of myopic agents with severely limited rational and forecasting capacities (in stark contrast to mainstream economics). We show how myopic agents, in a complex world, can produce a stable price system and demonstrate how they can adjust their production to changing demand flows. Agents behave without any knowledge of the overall process, and they generate a stable economy as large as the global network of exchanges. This is the true “miracle” of the market mechanism. In contrast to mainstream general equilibrium theory, this miracle can be explained without the need for an auctioneer or infinitely rational agents. Thanks to this book, evolutionary economics can now claim to be an independent approach to economics that can completely replace mainstream neoclassical economics.