Working Paper: NBER ID: w18824
Authors: Philippe Aghion; Ufuk Akcigit; Peter Howitt
Abstract: Schumpeterian growth theory has "operationalized" Schumpeter''s notion of creative destruction by developing models based on this concept. These models shed light on several aspects of the growth process which could not be properly addressed by alternative theories. In this survey, we focus on four important aspects, namely: (i) the role of competition and market structure; (ii) firm dynamics; (iii) the relationship between growth and development with the notion of appropriate growth institutions; (iv) the emergence and impact of long-term technological waves. In each case Schumpeterian growth theory delivers predictions that distinguish it from other growth models and which can be tested using micro data.
Keywords: No keywords provided
JEL Codes: O10; O11; O12; O30; O31; O33; O40; O43; O47
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| faster innovation-led growth (O39) | higher turnover rates of firms and jobs (J63) |
| competition (L13) | growth (O40) |
| institutional quality (L15) | economic outcomes (F61) |
| long-term technological waves (O33) | increased firm entry and exit rates (L26) |