nep-evo New Economics Papers
on Evolutionary Economics
Issue of 2016‒12‒04
five papers chosen by
Matthew Baker
City University of New York

  1. Interactions in Complex Systems By Stéphane Cordier; Nicolas Debarsy; Cem Ertur; François Nemo; Déborah Nourrit; Gérard Poisson; Christel Vrain
  2. “Reviewing Path Dependence Theory in Economics: Micro–Foundations of Endogenous Change Processes” By Gigante, Anna Azzurra
  3. Economic Institutions and Comparative Economic Development: A Post-Colonial Perspective By Daniel L. Bennett; Hugo J. Faria; James D. Gwartney; Daniel R. Morales
  4. Imitation in Heterogeneous Populations By Hedlund, Jonas; Oyarzun, Carlos
  5. Health and skill formation in early childhood By Pietro Biroli

  1. By: Stéphane Cordier (MAPMO - Mathématiques - Analyse, Probabilités, Modélisation - Orléans - CNRS - Centre National de la Recherche Scientifique - UO - Université d'Orléans, UO - Université d'Orléans); Nicolas Debarsy (CNRS - Centre National de la Recherche Scientifique, Laboratoire d'Economie d'Orléans - LEO - Laboratoire d'économie d'Orleans - CNRS - Centre National de la Recherche Scientifique - UO - Université d'Orléans); Cem Ertur (Laboratoire d'Economie d'Orléans - LEO - Laboratoire d'économie d'Orleans - CNRS - Centre National de la Recherche Scientifique - UO - Université d'Orléans, UO - Université d'Orléans); François Nemo (LLL - Laboratoire Ligérien de Linguistique - BNF - Bibliothèque Nationale de France - UO - Université d'Orléans - Université François Rabelais - Tours - CNRS - Centre National de la Recherche Scientifique, UO - Université d'Orléans); Déborah Nourrit (EPSYLON - Dynamique des capacités humaines et des conduites de santé - UM1 - Université Montpellier 1 - Université Jean Monnet - Saint-Etienne - Université Paul Valéry - Montpellier III); Gérard Poisson (PRISME - Laboratoire Pluridisciplinaire de Recherche en Ingénierie des Systèmes, Mécanique et Energétique - UO - Université d'Orléans - ENSI Bourges); Christel Vrain (LIFO - Laboratoire d'Informatique Fondamentale d'Orléans - UO - Université d'Orléans - INSA - Institut National des Sciences Appliquées, UO - Université d'Orléans)
    Abstract: This manuscript is composed of 18 contributions studying interactions in complex systems. These contributions were presented at the international conference on Interactions in Complex Systems, organized at University of Orléans in June 2013. This multidisciplinary manuscript aims at presenting how different disciplines may see their research topic from the complex system perspective and how interactions are accounted for in these complex systems. In this manuscript, we find contributions in mathematics, physics, computer sciences, robotics, life sciences, economics, linguistic, humanities or science of education The book is split into 4 parts, each one approaching interactions in complex systems from a particular perspective. We have gathered contributions by approach rather than by studied topic, the latter way being, to our viewpoint, less relevant to this type of book. The first part of the book contains papers dealing with interactions at the system level. The included contributions address territory planning, the traveling of population in the Neolithic era or interactions in neuron populations.The second part collects articles studying \textbf{networks} and proposing different methods for their analysis. This part contains contributions on link prediction, on interaction analysis in communities learning, on the influence of the type of strategies updates (parallel or sequential) on the evolution of cooperation among humans, opinion dynamics or the social function of gossip. Articles included in the third part focus on the analysis of interactions in social communications. As such, this part gathers papers studying teacher-student relations, the modeling of the teacher's evaluative speech to study students' interactions and the effects on learning or the modeling of human communications. Finally, the last part of this book is devoted to the analysis of interactions between economic agents in different fields. Thereby, a contribution develops a methodology to forecast employability of students in Earth Sciences; another article studies the importance of language and interactions between individuals as determinants of market equilibria; a mathematical model is derived to model money asset exchanges in the framework of a complex socioeconomic model in the third article and the last contribution of this part examines the study choice in an evolutionary game and show under which conditions the population of students splits into two classes of strategies in equilibrium.
    Keywords: Interactions,Complex System,Hyperbolic travelling waves,Territory Development,Neuron population,Game theory,Learning communities,Link prediction,Multiplex networks,Gossip,Opinion dynamics,Communication,Social-sport educators,Evaluative speech,Employability in Earth Science,Market interactions,Kinetic models,Evolutionary games
    Date: 2016–09–26
  2. By: Gigante, Anna Azzurra
    Abstract: This paper proposes a critical review of some of the main applications of path-dependence in economic theory. In particular, it calls attention on those theories clarifying the micro-foundations of path-dependent processes in economics. In the field of innovation, path-dependence shows the endogenous character of technological change, revealing the complex interplay among firm’s structural specificities, irreversibility, creativity, localized learning, externalities, feedbacks and contingent disturbing factors. In cognitive and institutional economics, the path-dependent character of learning processes, shown by cognitive and neurobiological studies, suggests interesting explanations for economic and institutional inefficiency persistence and, in general, for institutional genesis and evolution processes. Micro-foundations of economic path-dependence offer new opportunities for further extending theoretical and empirical economic research. For instance, they could contribute to extend economic self-organization approach, which has focused on the non-linear character of economic dynamic processes and has described economic systems as dissipative and entropic structures. In this sense, path-dependence represents a fertile tool for further clarifying economic and institutional dynamics and a precious opportunity of interdisciplinary research.
    Keywords: path-dependence; endogenous change; non-ergodic process; knowledge production; innovation economics; cognitive economics; institutions; neural structures; self-organization; dissipative systems; entropy law
    JEL: A12 B25 O31
    Date: 2016–11–28
  3. By: Daniel L. Bennett (Florida State University); Hugo J. Faria (University of Miami); James D. Gwartney (Florida State University); Daniel R. Morales (Florida State University)
    Abstract: Existing literature suggests that either colonial settlement conditions or the identity of colonizer were influential in shaping the post-colonial institutional environment, which in turn has impacted long-run economic development, but has treated the two potential identification strategies as substitutes. We argue that the two factors should instead be treated as complementary and develop a novel identification strategy that simultaneously accounts for both settlement conditions and colonizer identity to estimate the potential causal impact of a broad cluster of economic institutions on log real GDP per capita for a sample of former colonies. Using population density in 1500 as a proxy for settlement conditions, we find that the impact of settlement conditions on institutional development is much stronger among former British colonies than colonies of the other major European colonizers. Conditioning on several geographic factors and ethno-linguistic fractionalization, our baseline 2SLS estimates suggest that a standard deviation increase in economic institutions is associated with a three-fourths standard deviations increase in economic development. Our results are robust to a number of additional control variables, country subsample exclusions, and alternative measures of institutions, GDP, and colonizer classifications. We also find evidence that geography exerts both an indirect and direct effect on economic development.
    Keywords: Colonization, Comparative Economic Development, Growth, Geography, Institutions Publication Status: Working Paper
    JEL: F54 O1 O4 P5
    Date: 2016–11–12
  4. By: Hedlund, Jonas; Oyarzun, Carlos
    Abstract: We study a boundedly rational model of imitation when payoff distributions of actions differ across types of individuals. Individuals observe others’ actions and payoffs, and a comparison signal. One of two inefficiencies always arises: (i) uniform adoption, i.e., all individuals choose the action that is optimal for one type but sub-optimal for the other, or (ii) dual incomplete learning, i.e., only a fraction of each type chooses its optimal action. Which one occurs depends on the composition of the population and how critical the choice is for different types of individuals. In an application, we show that a monopolist serving a population of boundedly rational consumers cannot fully extract the surplus of high-valuation consumers, but can sell to consumers who do not value the good.
    Keywords: Imitation;heterogeneouspopulations;boundedrationality;Fubiniextension.
    Date: 2016–11–25
  5. By: Pietro Biroli
    Abstract: This paper analyzes the developmental origins and the evolution of health, cognitive, and socio-emotional skills during early childhood, from age 0 to 5. We explicitly model the dynamic interactions of health with the child’s behavior and cognitive skills, as well as the role of parental investment. A dynamic factor model corrects for the presence of measurement error in the proxy for the latent traits. Using data from the Avon Longitudinal Study of Parents and Children (ALSPAC), we find that children’s capabilities strongly interact and build on each other: health is an important determinant of early socio-emotional development; in turn socio-emotional skills have a positive impact on the evolution of both health and cognitive functions; on the other side, the effect of cognitive abilities on health is negligible. Furthermore, all facets of human capital display a high degree of persistence. Finally, mother’s investments are an important determinant of the child’s health, cognitive, and socio-emotional development early in life.
    Keywords: Human capital, health, early childhood, family investment, intergenerational transmission, ALSPAC
    JEL: J24 J13 I10 I12 I14
    Date: 2016–11

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