Output Dynamics, Flow Equilibria and Structural Change – A Prolegomenon to Evolutionary Macroeconomics

Ulrich Witt and Thomas Brenner ()

Papers on Economics and Evolution from Max Planck Institute of Economics, Evolutionary Economics Group

Abstract: In an evolutionary approach to macroeconomics, the market disequilibrium dynamics resulting from structural change need to be properly represented at the aggregate level. As suggested by the late F.A.Hayek, a suitable equilibrium concept required to this end as a frame of reference, is that of a flow equilibrium. The paper explores the corresponding flow dynamics that draw attention to variables not usually considered in macroeconomic theorizing. Using statistical estimates for these new variables for the West German manufacturing sector during the German unification process allows some important new insights on the relationships between structural change and macroeconomic performance.

Keywords: Length; 15; pages (search for similar items in EconPapers)
JEL-codes: B52 D50 E00 E11 E32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-evo, nep-mac and nep-pke
Date: 2007-11
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Journal Article: Output dynamics, flow equilibria and structural change—A prolegomenon to evolutionary macroeconomics (2008)
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