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Innovation, structural change and demand evolution: does demand saturate?

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Abstract

In this paper the exploration of the interaction mechanisms between the evolution of demand and the overall process of differentiation of the economic system is pursued in a twofold way: (i) the question is asked whether demand indeed saturates and whether such saturation is required for an ongoing economic development; (ii) the impact of the income distribution on the evolution of demand and thus on economic development is investigated. To study the existence and impact of demand saturation, Engel curves are calculated under different conditions. To study the impact of income distribution, TEVECON distinguishes within the population of the economic system two social classes, which differ in their level and quality of education, and thus for their human capital and wages.

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  1. https://www.researchgate.net/profile/Pier-Paolo_Saviotti https://www.researchgate.net/profile/Andreas_Pyka

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Authors and Affiliations

  1. Faculty of Geosciences, Cross-faculty “Institutions” program, sub-theme “innovation”, Utrecht University, Utrecht, The Netherlands

    Pier-Paolo Saviotti

  2. GREDEG CNRS, 250 Rue Albert Einstein, Sophia Antipolis, Valbonne, France

    Pier-Paolo Saviotti

  3. Economics Institute, University of Hohenheim, Wollgrasweg 23, D-70599, Stuttgart, Germany

    Andreas Pyka

Authors
  1. Pier-Paolo Saviotti
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  2. Andreas Pyka
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Correspondence to Andreas Pyka.

Additional information

The research leading to these results has received funding from the European Union Seventh Framework Programme FP7/2007-2013 under grant agreement n° SSH-CT-2010-266959; project PICK-ME.

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Saviotti, PP., Pyka, A. Innovation, structural change and demand evolution: does demand saturate?. J Evol Econ 27, 337–358 (2017). https://doi.org/10.1007/s00191-015-0428-2

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  • DOI: https://doi.org/10.1007/s00191-015-0428-2

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