IDEAS home Printed from https://ideas.repec.org/p/cwl/cwldpp/1674.html
   My bibliography  Save this paper

Innovation and Equilibrium?

Author

Abstract

A discussion is given of the problems involved in the formal modeling of the innovation process. The link between innovation and finance is stressed. The nature of how the circular flow of funds is broken and the role of finance in evaluation and control is discussed.

Suggested Citation

  • Martin Shubik, 2008. "Innovation and Equilibrium?," Cowles Foundation Discussion Papers 1674, Cowles Foundation for Research in Economics, Yale University.
    • Handle: RePEc:cwl:cwldpp:1674
    as

    Download full text from publisher

    File URL: https://cowles.yale.edu/sites/default/files/files/pub/d16/d1674.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Huber, Juergen & Shubik, Martin & Sunder, Shyam, 2010. "Three minimal market institutions with human and algorithmic agents: Theory and experimental evidence," Games and Economic Behavior, Elsevier, vol. 70(2), pages 403-424, November.
    2. Koopmans, Tjalling C, 1977. "Concepts of Optimality and Their Uses," American Economic Review, American Economic Association, vol. 67(3), pages 261-274, June.
    3. Sorin, Sylvain, 1996. "Strategic Market Games with Exchange Rates," Journal of Economic Theory, Elsevier, vol. 69(2), pages 431-446, May.
    4. Gode, Dhananjay K & Sunder, Shyam, 1993. "Allocative Efficiency of Markets with Zero-Intelligence Traders: Market as a Partial Substitute for Individual Rationality," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 119-137, February.
    5. Arthur, W Brian, 1989. "Competing Technologies, Increasing Returns, and Lock-In by Historical Events," Economic Journal, Royal Economic Society, vol. 99(394), pages 116-131, March.
    6. Huber, Juergen & Shubik, Martin & Sunder, Shyam, 2007. "Three Minimal Market Institutions: Theory and Experimental Evidence," Working Papers 27, Yale University, Department of Economics.
    7. Giovanni Dosi & Christopher Freeman & Richard Nelson & Gerarld Silverberg & Luc Soete (ed.), 1988. "Technical Change and Economic Theory," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1988, November.
    8. Sahi, Siddhartha & Yao, Shuntian, 1989. "The non-cooperative equilibria of a trading economy with complete markets and consistent prices," Journal of Mathematical Economics, Elsevier, vol. 18(4), pages 325-346, September.
    9. Martin Shubik, 1977. "A Theory of Money and Financial Institutions," Cowles Foundation Discussion Papers 462, Cowles Foundation for Research in Economics, Yale University.
    10. Juergen Huber & Martin Shubik & Shyam Sunder, 2007. "Three Minimal Market Games: Theory and Experimental Evidence," Levine's Bibliography 122247000000001480, UCLA Department of Economics.
    11. Martin Shubik, 1972. "A Theory of Money and Financial Institutions. Part V. The Rate of Interest on Fiat Money in a Closed Economy," Cowles Foundation Discussion Papers 338, Cowles Foundation for Research in Economics, Yale University.
    12. Martin Shubik, 1972. "A Theory of Money and Financial Institutions. Part IV. Fiat Money and Noncooperative Equilibrium in a Closed Economy," Cowles Foundation Discussion Papers 330, Cowles Foundation for Research in Economics, Yale University.
    13. Martin Shubik, 1972. "A Theory of Money and Financial Institutions. Part VII. Money, Trust and Equilibrium Points in Games in Extensive Form," Cowles Foundation Discussion Papers 331, Cowles Foundation for Research in Economics, Yale University.
    14. Lucas, Robert E, Jr, 1980. "Equilibrium in a Pure Currency Economy," Economic Inquiry, Western Economic Association International, vol. 18(2), pages 203-220, April.
    15. Daniel Ellsberg, 1961. "Risk, Ambiguity, and the Savage Axioms," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 75(4), pages 643-669.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Weifang Lou & David Prentice & Xiangkang Yin, 2008. "The Effects of Product Ageing on Demand: The Case of Digital Cameras," Working Papers 2008.06, School of Economics, La Trobe University.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jan Toporowski, 2013. "The Elgar Companion to Hyman Minsky," Review of Political Economy, Taylor & Francis Journals, vol. 25(1), pages 175-177, January.
    2. Martin Shubik, 2012. "Mathematical Institutional Economics," Cowles Foundation Discussion Papers 1882, Cowles Foundation for Research in Economics, Yale University.
    3. Martin Angerer & Juergen Huber & Martin Shubik & Shyam Sunder, 2007. "An Economy with Personal Currency: Theory and Evidence," Yale School of Management Working Papers amz2448, Yale School of Management, revised 01 Jan 2009.
    4. Huber, Jürgen & Shubik, Martin & Sunder, Shyam, 2014. "Sufficiency of an outside bank and a default penalty to support the value of fiat money: Experimental evidence," Journal of Economic Dynamics and Control, Elsevier, vol. 47(C), pages 317-337.
    5. Huber, Juergen & Shubik, Martin & Sunder, Shyam, 2018. "Financing of public goods through taxation in a general equilibrium economy: Experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 148(C), pages 171-188.
    6. Juergen Huber & Martin Shubik & Shyam Sunder, 2008. "The Value of Fiat Money with an Outside Bank: An Experimental Game," Cowles Foundation Discussion Papers 1675, Cowles Foundation for Research in Economics, Yale University, revised Apr 2010.
    7. Martin Angerer & Juergen Huber & Martin Shubik & Shyam Sunder, 2010. "An economy with personal currency: theory and experimental evidence," Annals of Finance, Springer, vol. 6(4), pages 475-509, October.
    8. Martin Angerer & Juergen Huber & Martin Shubik & Shyam Sunder, 2007. "An Economy with Personal Currency: Theory and Evidence," Yale School of Management Working Papers amz2448, Yale School of Management, revised 01 Jan 2009.
    9. Philip Arestis & Alexander Mihailov, 2011. "Classifying Monetary Economics: Fields And Methods From Past To Future," Journal of Economic Surveys, Wiley Blackwell, vol. 25(4), pages 769-800, September.
    10. Martin Shubik, 1973. "A Theory of Money and Financial Institutions. Part XII. A Dynamic Economy with Fiat Money Without Banking and With and Without Production Goods," Cowles Foundation Discussion Papers 364, Cowles Foundation for Research in Economics, Yale University.
    11. Andre Nassif & Carmem Aparecida Feijo & Eliane Araújo, 2016. "Structural change, catching up and falling behind in the BRICS: A comparative analysis based on trade pattern and Thirlwall’s Law," PSL Quarterly Review, Economia civile, vol. 69(279), pages 373-421.
    12. Vialle, Pierre & Song, Junjie & Zhang, Jian, 2012. "Competing with dominant global standards in a catching-up context. The case of mobile standards in China," Telecommunications Policy, Elsevier, vol. 36(10), pages 832-846.
    13. Juergen Huber & Martin Shubik & Shyam Sunder, 2011. "Financing of Public Goods through Taxation in a General Equilibrium Economy: Theory and Experimental Evidence," Cowles Foundation Discussion Papers 1830, Cowles Foundation for Research in Economics, Yale University.
    14. Jean-Michel Dalle, 1995. "Dynamiques d'adoption, coordination et diversité : la diffusion des standards technologiques," Revue Économique, Programme National Persée, vol. 46(4), pages 1081-1098.
    15. Jeroen van den Bergh & John Gowdy, 2000. "Evolutionary Theories in Environmental and Resource Economics: Approaches and Applications," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 17(1), pages 37-57, September.
    16. Yuko Aoyama, 2003. "Sociospatial Dimensions of Technology Adoption: Recent M-Commerce and E-Commerce Developments," Environment and Planning A, , vol. 35(7), pages 1201-1221, July.
    17. Jeroen Van den Bergh & Frans Oosterhuis, 2005. "An Evolutionary Economic Analysis of Energy Transitions," ERSA conference papers ersa05p823, European Regional Science Association.
    18. Liao, Mouhua, 2016. "A market game with symmetric limit orders," Journal of Mathematical Economics, Elsevier, vol. 64(C), pages 66-76.
    19. Zeppini, Paolo & van den Bergh, Jeroen C.J.M., 2013. "Optimal diversity in investments with recombinant innovation," Structural Change and Economic Dynamics, Elsevier, vol. 24(C), pages 141-156.
    20. KOUTSOUGERAS, Leonidas, 1999. "Market games with multiple trading posts," LIDAM Discussion Papers CORE 1999018, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

    More about this item

    Keywords

    Innovation; Invention; Circular flow; Finance;
    All these keywords.

    JEL classification:

    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • G2 - Financial Economics - - Financial Institutions and Services
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cwl:cwldpp:1674. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Brittany Ladd (email available below). General contact details of provider: https://edirc.repec.org/data/cowleus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.