Spontaneous economic order

Yong Tao ()
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Yong Tao: Southwest University

Journal of Evolutionary Economics, 2016, vol. 26, issue 3, No 1, 467-500

Abstract: Abstract This paper provides attempts to formalize Hayek’s notion of spontaneous order within the framework of an Arrow-Debreu economy. Our study shows that, if a competitive economy is sufficiently fair and free, a spontaneous economic order will emerge in long-run competitive equilibria so that social members spontaneously occupy an unplanned distribution of income. Despite this, the spontaneous order may degenerate in the form of economic crises whenever an equilibrium economy approaches the extreme competition. Remarkably, such a theoretical framework of spontaneous order provides a bridge linking Austrian economics and neoclassical economics, where a truth begins to emerge: “Freedom promotes technological progress”.

Keywords: General equilibrium; Spontaneous order; Rawls’ fairness; Freedom; Technological progress; D5; D63; B25 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (9)

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DOI: 10.1007/s00191-015-0432-6

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