Skip Navigation

This Article
Right arrow Full Text (PDF)
Right arrow Alert me when this article is cited
Right arrow Alert me if a correction is posted
Services
Right arrow Email this article to a friend
Right arrow Alert me to new issues of the journal
Right arrow Add to My Personal Archive
Right arrow Download to citation manager
Right arrow Search for citing articles in:
ISI Web of Science (7)
Right arrowRequest Permissions
Google Scholar
Right arrow Articles by van den Bergh, J. C. J. M.
Right arrow Articles by Gowdy, J. M.
Right arrow Search for Related Content
Related Collections
Right arrow B52 - Institutional; Evolutionary
Right arrow E00 - General
Right arrow E11 - Marxian; Sraffian; Institutional; Evolutionary
Right arrow O11 - Macroeconomic Analyses of Economic Development
Right arrow O30 - General
Social Bookmarking
Add to CiteULike   Add to Connotea   Add to Del.icio.us  
What's this?

Cambridge Journal of Economics 27:65-84 (2003)
Copyright © 2003 Cambridge Political Economy Society

Article

The microfoundations of macroeconomics: an evolutionary perspective

Jeroen C. J. M. van den Bergh and John M. Gowdy *

*Department of Spatial Economics, and Institute for Environmental Studies, Free University, and Rensselaer Polytechnic Institute, respectively.

Address for correspondence: Jeroen C. J. M. van den Bergh, Department of Spatial Economics, Free University, De Boelelaan 1105, 1081 HV Amsterdam, The Netherlands; email: jbergh{at}feweb.vu.nl; and John M. Gowdy, Department of Economics, School of Humanities & Social Sciences, Rensselaer Polytechnic Institute, Troy, NY 12180-3590, USA; email: Lgowdy{at}aol.com

Abstract

We consider the microfoundations controversy from the perspective of economic evolution. Although the analogy between biology and economics has been noted before, it has rarely focused on clarifying the micro–macro distinction in economic theory and modelling. The micro–macro debate is more developed in biology than in economics owing to a greater degree of specialisation and a greater degree of interaction between various sub-disciplines. The task for economists is to distinguish between insights directly relevant for economic theory and ones that hinge on unique features of biological systems. We argue that both micro and macro processes drive economic change and that macroeconomic change cannot be explained by microlevel optimising alone. We show that debates in biology about group selection and punctuated equilibria are relevant to understanding economic evolution. The opposition of reductionism and holism is of little use and, in its place, a hierarchical approach is proposed. This allows for both upward and downward causation and interaction between levels.

Key Words: Evolutionary biology • Group selection • Hierarchical causation • Punctuated equilibrium • Sorting


Add to CiteULike CiteULike   Add to Connotea Connotea   Add to Del.icio.us Del.icio.us    What's this?


This article has been cited by other articles:


Home page
 Journal of Marketing EducationHome page
M. D. Basil and D. Z. Basil
The Marketing Market: Matching Academic Hiring Institutions and Job Candidates
Journal of Marketing Education, August 1, 2008; 30(2): 138 - 149.
[Abstract] [PDF]

Home page
 Review of Radical Political EconomicsHome page
J. P. Goldstein
Marxian Microfoundations: Contribution or Detour?
Review of Radical Political Economics, December 1, 2006; 38(4): 569 - 594.
[Abstract] [PDF]

Home page
 Cambridge J EconHome page
J. Gowdy and J. D. Erickson
The approach of ecological economics
Camb. J. Econ., March 1, 2005; 29(2): 207 - 222.
[Abstract] [Full Text] [PDF]


Disclaimer: Please note that abstracts for content published before 1996 were created through digital scanning and may therefore not exactly replicate the text of the original print issues. All efforts have been made to ensure accuracy, but the Publisher will not be held responsible for any remaining inaccuracies. If you require any further clarification, please contact our Customer Services Department.