Innovative Mechanisms in a Private Ownership Economy with a Financial Market
Journal Title: Argumenta Oeconomica Cracoviensia - Year 2017, Vol 1, Issue 17
Abstract
Let a private ownership economy with a financial market be given. In this economy, innovations in Schumpeter’s sense of the term can be modeled by the use of the Arrow and Debreu topological apparatus. This set-up reveals the impact of the relationship between the financial and the real markets in the economy on innovation. The paper distinguishes and models innovations and different types of innovative mechanisms revealed within Schumpeterian evolution. Following Hurwicz’s approach to modeling economic mechanisms, the main results take the form of mathematical theorems interpreted in the language of economics.
Authors and Affiliations
Ilona Ćwięczek, Agnieszka Lipieta
Keywords
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- EP ID EP292101
- DOI 10.15678/AOC.2017.1701
- Views 91
- Downloads 0
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