Page info:  *Author: Mathiesen, H.  *Document version: 2.1. *Copyright 1997-2017, ViamInvest. Legal notice.



 

Exhibition: The evolution of economic performance

 

Introduction: At least since Alchian [1950], economists have known that Darwin's theory about biological evolution could be used to describe the evolution and the efficiency (performance) of economic systems. The three core elements in the economic version of this theory are: 1) The transmission mechanism based on the written and tacit (personal) knowledge about production and transaction technology that one generation passes on to the next generation. 2) The variation mechanism based on deliberate innovations or stochastic shifts in production and transaction technology. 3) The selection mechanism based on competition that promotes the ‘survival of the fittest’ production and transaction technology. The selection mechanism is also based on systematic and scientific identification and selection of the most efficient production and transaction technology.

 

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- Copyright 1997-2017, ViamInvest. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Legal notice.