This paper presents a formal model in which differential satiation dynamics of various consumer needs explain (not only describe) the shapes of Engel curves. In the model, individuals allocate their income to various consumption categories proportional to corresponding need deprivation states, a...

In this paper, we propose an industrial dynamics model to analyze the interactions between the price-performance sensitivity of demand, the sources of innovation in a sector, and certain features of the corresponding pattern of industrial transformation. More precisely, we study market...

This paper studies an evolutionary model of network formation with endogenous decay, in which agents benefit both from direct and indirect connections. In addition to forming (costly) links, agents choose actions for a coordination game that determines the level of decay of each link. We address...

The analysis of social interactions as drivers of economic dynamics represents a growing field within the economics of complexity. Social interactions are a specific form of interdependence whereby the changes in the behavior of other agents affect utility functions for households and production...

The knowledge spillover theory of entrepreneurship seeks to explain the fundamentals and consequences of entrepreneurship with respect to economic performance. This paper uses the knowledge spillover theory to explain different innovation outcomes. We hypothesize that a high rate of...

This study investigates the voluntary allocation of monetary resources to future food consumption by customers of campus cafeterias. A rich dataset allows us to infer social proximity of cafeteria customers and to measure social spillovers in allocation decisions. We show that individuals tend...

Many industrialized countries have introduced environmental policy measures in order to reduce negative externalities linked to economic activities. These policy actions produce different effects on the economic system depending on the regulatory tools adopted and the specific objective of...

This study documents that the survival of start-ups is central in explaining the relationship between entry and regional employment growth. Distinguishing between start-ups according to the period of their survival shows that the positive effect of new business formation on employment growth is...

We theoretically analyze unbalanced growth in an urban economy arising from the preferences of the creative class concerning the relative desirability of agricultural, manufacturing, and service goods. We study two cases. In the first case, the production functions for the three categories of...

This paper analyzes the effects on economic agents’ behavior of an innovative environmental protection mechanism that the public administration of a tourist region may adopt to attract visitors while protecting the environment. On the one hand, the public administration sells to the tourists...