Economic growth, business cycles and products variety: exploring the role of demand satiety
Faridah Djellal () and
Faïz Gallouj ()
Journal of Evolutionary Economics, 2017, vol. 27, issue 3, 503-529
Abstract The paper presents a model of economic growth based on a population of heterogeneous and interacting agents. This model succeeds to generate - in a single framework - GDP growth and cycles as well as product life cycles. Contrary to the existing literature, we find that an increasing variety of consumer goods is not a necessary condition for sustaining the economic growth when consumers are subject to satiation. Indeed, intensive creative-destruction - that is an intensive process of sectors births and deaths - appears to be a more powerful growth engine. We also find that changing consumers’ satiety thresholds is likely to affect the nature of the correlation between the cyclical components of macroeconomic time series.
Keywords: Economic growth; Creative destruction; Product variety; Demand satiety; Agent-based modeling (search for similar items in EconPapers)
JEL-codes: E30 E20 L20 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s00191-017-0498-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:joevec:v:27:y:2017:i:3:d:10.1007_s00191-017-0498-4
Ordering information: This journal article can be ordered from
Access Statistics for this article
Journal of Evolutionary Economics is currently edited by Uwe Cantner, Elias Dinopoulos, Horst Hanusch and Luigi Orsenigo
More articles in Journal of Evolutionary Economics from Springer
Bibliographic data for series maintained by Sonal Shukla ().