The problem of choice of technique in single production linear models has been extensively analysed under the assumption that the set of processes available in the economy is exogenously given and globally known. However, since Atkinson and Stiglitz's 1969 article economists have considered...

This paper formalizes in a very stylized way localized learning of consumers and of producers within Pasinetti model of structural change. In this way, we are able to endogenize technological and consumption dynamics with bounded rational firms and consumers. We show that the theoretical...