Increasing Returns, Path dependence, and Circular and Cumulative Causation in Economics
Increasing Returns is another term for Positive Feedback loop.
Path Dependence is also known as Lock-In
Circular and Cumulative Causation is another name for Positive Feedback Loop.
Vicious Circle – Bad gets to worse, Failure leads to more failure
Virtuous Circle – Success breeds Success, Wealth gets more wealth
See this Document – Book Foreward by Geoffrey Hodgson
Key Economists :
- Allyn Young
- Gunnar Myrdal
- Karl William Kapp
- Paul Romer
- Knut Wicksell
- W. Brian Arthur
- Paul David
- Steven Durlauf
Various Increasing Returns, Circular and Cumulative Causations Theories
- CCC Theory of Allyn Young
- CCC Theory of N Kaldor
- CCC Theory of Gunnar Myrdal
- CCC Theory of T Veblen
- CCC Theory of Paul Romer
- CCC Theory of Paul Krugman
- CCC Theory of W. Brain Arthur
Circular Causation in Kaldor Theory
Key Sources of Research:
A A Young
Increasing Returns and Technical Progress
The Economic Journal
Kaldor, N. (1966)
Causes of the Slow Rate of Economic Growth of the United Kingdom,
Cambridge: Cambridge University Press.
Kaldor, N. (1970)
“The case for regional policies,”
Scottish Journal of Political Economy, 17, pp. 337-348.
Kaldor, N. (1985)
Economics Without Equilibrium,
Cardiff, University College Cardiff Press.
Kaldor, N. (1996)
Causes of Growth and Stagnation in the World Economy,
Cambridge, Cambridge University Press
Kaldor, N., 1981.
The role of increasing returns, technical progress and cumulative causation in the theory of international trade and economic growth.
Economie appliquée, 34(4), pp.593-617.
Nicholas Kaldor on Endogenous Money and Increasing Returns
Guglielmo Forges Davanzati
“Myrdal’s theory of cumulative causation.”
Evolutionary and Institutional Economics Review 3, no. 2 (2007): 275-284.
Gunnar Myrdal’s Theory of Cumulative Causation Revisited
Circular Cumulative Causation (CCC) à la Myrdal and Kapp — Political Institutionalism for Minimizing Social Costs
European Contributions to Evolutionary Institutional Economics: The Cases of ‘Cumulative Circular Causation’ (CCC) and ‘Open Systems Approach’ (OSA).
Some Methodological and Policy Implications
Sebastian Berger and Wolfram Elsner
Dutt, Amitava Krishna.
“Path dependence, equilibrium and economic growth.”
In Path Dependency and Macroeconomics, pp. 119-161. Palgrave Macmillan UK, 2009.
“Notes and comments. Cumulative causation, interrelatedness and the theory of economic growth: a reply to Argyrous and Toner.”
Cambridge Journal of Economics 25, no. 1 (2001): 107-112.
“‘History versus equilibrium’and the theory of economic growth.”
Cambridge Journal of Economics 21, no. 3 (1997): 365-378.
Setterfield, M. (2009)
“Path dependency, hysteresis and macrodynamics,”
in P. Arestis and M. Sawyer (eds) Path Dependency and Macroeconomics (International Papers in Political Economy 2009), London, Palgrave Macmillan, 37-79
Rapid Growth and Relative Decline: Modelling Macroeconomic Dynamics with Hysteresis,
Kaldor’s 1970 Regional Growth Model Revisited
“Setterfield on cumulative causation and interrelatedness: a comment.”
Cambridge Journal of Economics 25, no. 1 (2001): 103-106.
Endogenous Growth: A Kaldorian Approach
Increasing Returns and Long Run Growth
O’Hara, P.A., 2008.
Principle of circular and cumulative causation: Fusing Myrdalian and Kaldorian growth and development dynamics.
Journal of Economic Issues, 42(2), pp.375-387.
Path Dependency and Macroeconomics
edited by P. Arestis, Malcolm Sawyer
Main Currents in Cumulative Causation: The Dynamics of Growth and Development
Palgrave Macmillan UK, May 12, 1999 – Business & Economics – 228 pages
Why is Economics not an Evolutionary Science?
(with an introduction by Jean Boulton)
On the evolution of Thorstein Veblen’s evolutionary economics
Geoffrey M. Hodgson
“Different epistemologies beneath similar methods: The case of causal loop thinkers.”
Human Systems Management 9, no. 3 (1990): 195-198.
The feedback concept in American social science, with implications for system dynamics.
Path Dependence in Aggregate Output
STEVEN N. DURLAUF
Nonergodic Economic Growth
STEVEN N. DURLAUF
Evolution and Path Dependence in Economic Ideas: Past and Present
edited by Pierre Garrouste, Stavros Ioannides,
European Association for Evolutionary Political Economy
Path dependence, its critics and the quest for ‘historical economics
Paul A. David
Positive Feedbacks and Research Productivity in Science: Reopening Another Black Box
Paul A. David
Increasing Returns and Path Dependence in the Economy
By W. Brian Arthur
University of Michigan Press, 1994 – Business & Economics – 201 pages
Positive Feedbacks in the Economy
W. Brian Arthur
26 November 1989
Complexity economics: a different framework for economic thought
W. Brian Arthur
March 12, 2013
A webpage for resources on Path dependence in Economics
The Foundations of Non-Equilibrium Economics: The Principle of Circular and Cumulative Causation
edited by Sebastian Berger
The New Approach to Regional Economics Dynamics: Path Dependence and Spatial Self-Reinforcing Mechanisms
Domenico Marino and Raffaele Trapasso
Positive Feedback Mechanisms in. Economic Development: A Review of Recent Contributions
Increasing Returns and Economic Geography
March 4, 2010