Producers' Optima in Schumpeterian Evolution
DOI:
https://doi.org/10.15678/ZNUEK.2017.0970.1004Keywords:
Debreu model, production system, Schumpeterian evolution, innovation, Kuratowski convergenceAbstract
The paper presents a production system in the Debreu model of general equilibrium. According to Schumpeter, economic development is possible only on the strength of innovations being introduced. This process provides a sequence of optimal production plans, corresponding to each stage of the innovative evolution. The paper characterises the sequence of optimal plans and provides the conditions for its convergence. Moreover, the limiting production plan is shown to be the producer’s optimum in the final state.
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References
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