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Path Dependency

Author

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  • Mark Setterfield

    (Department of Economics, New School for Social Research)

Abstract

Path dependency is defined, and three different specific concepts of path dependency – cumulative causation, lock in, and hysteresis – are analyzed. The relationships between path dependency and equilibrium, and path dependency and fundamental uncertainty are also discussed. Finally, a typology of dynamical systems is developed to clarify these relationships.

Suggested Citation

  • Mark Setterfield, 2015. "Path Dependency," Working Papers 1521, New School for Social Research, Department of Economics.
    • Handle: RePEc:new:wpaper:1521
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    File URL: http://www.economicpolicyresearch.org/econ/2015/NSSR_WP_212015.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Path dependency; cumulative causation; lock in; hysteresis; equilibrium; fundamental uncertainty; resilience;
    All these keywords.

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools

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