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Preface: Special issue on nonlinear dynamical systems in economic modeling
Firms, technology, training and government fiscal policies: An evolutionary approach
1. | Facultad de Economía, Universidad Autónoma de San Luis Potosí, México, álvaro Obregón 64, Col. Centro, C. P. 78000, San Luis Potosí, S.L.P., México |
2. | LIAAD–INESC TEC, Rua do Campo Alegre 687, 4169-007 Porto, Portugal |
3. | Insituto Potosino de Investigación científica y tecnológica A.C., México, Camino a la presa de San José 2055, Lomas 4ta secc, C.P. 78216, San Luis Potosí, S.L.P., México |
4. | Faculdade de Ciências da Nutrição e Alimentação, Universidade do Porto |
5. | LIAAD–INESC TEC, Rua do Campo Alegre 823, 4150-180 Porto, Portugal |
6. | Departmento de Matemática, Universidade do Porto, Portugal |
In this paper we propose and analyze a game theoretical model regarding the dynamical interaction between government fiscal policy choices toward innovation and training (I&T), firm's innovation, and worker's levels of training and education. We discuss four economic scenarios corresponding to strict pure Nash equilibria: the government and I&T poverty trap, the I&T poverty trap, the I&T high premium niche, and the I&T ideal growth. The main novelty of this model is to consider the government as one of the three interacting players in the game that also allow us to analyse the I&T mixed economic scenarios with a unique strictly mixed Nash equilibrium and with I&T evolutionary dynamical cycles.
References:
[1] |
E. Accinelli, F. Martins, A. A. Pinto, A. Afsar and B. M. P. M. Oliveira, The power of voting and corruption cycles, The Journal of Mathematical Sociology, (2020), 1–24.
doi: 10.1080/0022250X.2020.1818077. |
[2] |
E. Accinelli, B. Bazzano, F. Robledo and P. Romero,
Nash equilibrium in evolutionary competitive models of firms and workers under external regulation, Journal of Dynamics & Games, 2 (2015), 1-32.
doi: 10.3934/jdg.2015.2.1. |
[3] |
E. Accinelli and E. J. S. Carrera,
Strategic complementarities between innovative firms and skilled workers: The poverty trap and the policymaker's intervention, Structural Change and Economic Dynamics, 22 (2011), 30-40.
doi: 10.1016/j.strueco.2010.11.004. |
[4] |
E. Accinelli, E. S. Carrera, L. Policardo and O. Salas,
Free mobility of capital and labor force in a two-country model: The dynamic game for growth, Journal of Dynamics & Games, 6 (2019), 179-194.
doi: 10.3934/jdg.2019013. |
[5] |
U. Akcigit, J. Grigsby, T. Nicholas and S. Stantcheva, Taxation and Innovation in the 20th Century, Technical report, National Bureau of Economic Research, 2018. |
[6] |
S. Aoyagi and S. Managi,
The impact of subsidies on efficiency and production: Empirical test of forestry in Japan, International Journal of Agricultural Resources, Governance and Ecology, 3 (2004), 216-230.
doi: 10.1504/IJARGE.2004.006037. |
[7] |
C. N. Brunnschweiler and E. H. Bulte,
Linking natural resources to slow growth and more conflict, Science, 320 (2008), 616-617.
doi: 10.1126/science.1154539. |
[8] |
E. H. Bulte, R. Damania and R. T. Deacon,
Resource intensity, institutions, and development, World Development, 33 (2005), 1029-1044.
doi: 10.1016/j.worlddev.2005.04.004. |
[9] |
E. J. S. Carrera, S. Ille and G. Travaglini, Macrodynamic Modeling of Innovation Equilibria and Traps, The B.E. Journal of Macroeconomics, 2021.
doi: 10.1515/bejm-2020-0258. |
[10] |
E. J. S. Carrera, L. Policardo, A. García and E. Accinelli, A co-evolutionary model for human capital and innovative firms, in Games and Dynamics in Economics Springer, (2020), 17–32.
doi: 10.1007/978-981-15-3623-6_2. |
[11] |
V. Costantini and S. Monni,
Environment, human development and economic growth, Ecological Economics, 64 (2008), 867-880.
doi: 10.1016/j.ecolecon.2007.05.011. |
[12] |
R. Feenstra,
New technology and trade: A threat to low-skilled workers?, Swedish Economic Policy Review, 5 (1998), 137-160.
|
[13] |
H. Fofack, Technology Trap and Poverty Trap in Sub-Saharan Africa, The World Bank, World Bank Institute, 2008. |
[14] |
D. Fudenberg and J. Tirole, Game Theory, MIT Press, Cambridge, MA, 1991.
![]() ![]() |
[15] |
V. Gunnella, L. Quaglietti, et al., The economic implications of rising protectionism: A euro area and global perspective, Economic Bulletin Articles, 3 (2019). |
[16] |
S. Helfstein, What Happens When Antitrust and Protectionism Cycles Collide, online, 2019. |
[17] |
International Labour Office, A skilled workforce for strong, sustainable and balanced growth: A G20 training strategy, 2010. |
[18] |
M. Khan, State failure in developing countries and strategies of institutional reform, Toward Pro-Poor Policies. Aid, Institutions, and Globalization. Annual World Bank Conference on Development Economics, Europe, Oxford University Press and World Bank, 2004,165–195. |
[19] |
L. Kim and J. M. Utterback,
The evolution of organizational structure and technology in a developing country, Management Science, 29 (1983), 1185-1197.
doi: 10.1287/mnsc.29.10.1185. |
[20] |
C. F. Manski,
Communicating uncertainty in policy analysis, Proceedings of the National Academy of Sciences, 116 (2019), 7634-7641.
doi: 10.1073/pnas.1722389115. |
[21] |
C. Pérez,
La modernización industrial en américa latina y la herencia de la sustitución de importaciones, Comercio Exterior, 46 (1996), 347-363.
|
[22] |
M. U. Rehman, N. Asghar and J. Hussain, Are disaggregate industrial returns sensitive to economic policy uncertainty, Physica A: Statistical Mechanics and its Applications, 527 (2019), 121301.
doi: 10.1016/j.physa.2019.121301. |
[23] |
D. Rodrik,
Industrial policy: Don't ask why, ask how, Middle East Development Journal, 1 (2009), 1-29.
doi: 10.1142/S1793812009000024. |
[24] |
P. M. Romer,
Increasing returns and long-run growth, Journal of Political Economy, 94 (1986), 1002-1037.
doi: 10.1086/261420. |
[25] |
J. D. Sachs and A. M Warner, Natural Resource Abundance and Economic Growth, Technical report, National Bureau of Economic Research, 1995. |
[26] |
J. M. Salazar-Xirinachs, I. Nübler and R. Kozul-Wright, editors, Transforming Economies: Making Industrial Policy Work for Growth, Jobs and Development, International Labour Organization, 2014. |
[27] |
W. H. Sandholm,
Population games and deterministic evolutionary dynamics, Handbook of Game Theory with Economic Applications, 4 (2015), 703-778.
doi: 10.1016/B978-0-444-53766-9.00013-6. |
[28] |
J. A. Schumpeter, The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle, Transaction Books, New Brunswick, New Jersey, Translated from the 1911 original German, Theorie der wirtschaftlichen Entwicklung (translator: Redvers Opie), 1983. |
[29] |
S. Sorin,
Replicator dynamics: Old and new, Journal of Dynamics & Games, 7 (2020), 365-386.
doi: 10.3934/jdg.2020028. |
[30] | |
[31] |
J. Tinbergen, Income Distribution: Analysis and Policies, Elsevier, 1975. |
show all references
References:
[1] |
E. Accinelli, F. Martins, A. A. Pinto, A. Afsar and B. M. P. M. Oliveira, The power of voting and corruption cycles, The Journal of Mathematical Sociology, (2020), 1–24.
doi: 10.1080/0022250X.2020.1818077. |
[2] |
E. Accinelli, B. Bazzano, F. Robledo and P. Romero,
Nash equilibrium in evolutionary competitive models of firms and workers under external regulation, Journal of Dynamics & Games, 2 (2015), 1-32.
doi: 10.3934/jdg.2015.2.1. |
[3] |
E. Accinelli and E. J. S. Carrera,
Strategic complementarities between innovative firms and skilled workers: The poverty trap and the policymaker's intervention, Structural Change and Economic Dynamics, 22 (2011), 30-40.
doi: 10.1016/j.strueco.2010.11.004. |
[4] |
E. Accinelli, E. S. Carrera, L. Policardo and O. Salas,
Free mobility of capital and labor force in a two-country model: The dynamic game for growth, Journal of Dynamics & Games, 6 (2019), 179-194.
doi: 10.3934/jdg.2019013. |
[5] |
U. Akcigit, J. Grigsby, T. Nicholas and S. Stantcheva, Taxation and Innovation in the 20th Century, Technical report, National Bureau of Economic Research, 2018. |
[6] |
S. Aoyagi and S. Managi,
The impact of subsidies on efficiency and production: Empirical test of forestry in Japan, International Journal of Agricultural Resources, Governance and Ecology, 3 (2004), 216-230.
doi: 10.1504/IJARGE.2004.006037. |
[7] |
C. N. Brunnschweiler and E. H. Bulte,
Linking natural resources to slow growth and more conflict, Science, 320 (2008), 616-617.
doi: 10.1126/science.1154539. |
[8] |
E. H. Bulte, R. Damania and R. T. Deacon,
Resource intensity, institutions, and development, World Development, 33 (2005), 1029-1044.
doi: 10.1016/j.worlddev.2005.04.004. |
[9] |
E. J. S. Carrera, S. Ille and G. Travaglini, Macrodynamic Modeling of Innovation Equilibria and Traps, The B.E. Journal of Macroeconomics, 2021.
doi: 10.1515/bejm-2020-0258. |
[10] |
E. J. S. Carrera, L. Policardo, A. García and E. Accinelli, A co-evolutionary model for human capital and innovative firms, in Games and Dynamics in Economics Springer, (2020), 17–32.
doi: 10.1007/978-981-15-3623-6_2. |
[11] |
V. Costantini and S. Monni,
Environment, human development and economic growth, Ecological Economics, 64 (2008), 867-880.
doi: 10.1016/j.ecolecon.2007.05.011. |
[12] |
R. Feenstra,
New technology and trade: A threat to low-skilled workers?, Swedish Economic Policy Review, 5 (1998), 137-160.
|
[13] |
H. Fofack, Technology Trap and Poverty Trap in Sub-Saharan Africa, The World Bank, World Bank Institute, 2008. |
[14] |
D. Fudenberg and J. Tirole, Game Theory, MIT Press, Cambridge, MA, 1991.
![]() ![]() |
[15] |
V. Gunnella, L. Quaglietti, et al., The economic implications of rising protectionism: A euro area and global perspective, Economic Bulletin Articles, 3 (2019). |
[16] |
S. Helfstein, What Happens When Antitrust and Protectionism Cycles Collide, online, 2019. |
[17] |
International Labour Office, A skilled workforce for strong, sustainable and balanced growth: A G20 training strategy, 2010. |
[18] |
M. Khan, State failure in developing countries and strategies of institutional reform, Toward Pro-Poor Policies. Aid, Institutions, and Globalization. Annual World Bank Conference on Development Economics, Europe, Oxford University Press and World Bank, 2004,165–195. |
[19] |
L. Kim and J. M. Utterback,
The evolution of organizational structure and technology in a developing country, Management Science, 29 (1983), 1185-1197.
doi: 10.1287/mnsc.29.10.1185. |
[20] |
C. F. Manski,
Communicating uncertainty in policy analysis, Proceedings of the National Academy of Sciences, 116 (2019), 7634-7641.
doi: 10.1073/pnas.1722389115. |
[21] |
C. Pérez,
La modernización industrial en américa latina y la herencia de la sustitución de importaciones, Comercio Exterior, 46 (1996), 347-363.
|
[22] |
M. U. Rehman, N. Asghar and J. Hussain, Are disaggregate industrial returns sensitive to economic policy uncertainty, Physica A: Statistical Mechanics and its Applications, 527 (2019), 121301.
doi: 10.1016/j.physa.2019.121301. |
[23] |
D. Rodrik,
Industrial policy: Don't ask why, ask how, Middle East Development Journal, 1 (2009), 1-29.
doi: 10.1142/S1793812009000024. |
[24] |
P. M. Romer,
Increasing returns and long-run growth, Journal of Political Economy, 94 (1986), 1002-1037.
doi: 10.1086/261420. |
[25] |
J. D. Sachs and A. M Warner, Natural Resource Abundance and Economic Growth, Technical report, National Bureau of Economic Research, 1995. |
[26] |
J. M. Salazar-Xirinachs, I. Nübler and R. Kozul-Wright, editors, Transforming Economies: Making Industrial Policy Work for Growth, Jobs and Development, International Labour Organization, 2014. |
[27] |
W. H. Sandholm,
Population games and deterministic evolutionary dynamics, Handbook of Game Theory with Economic Applications, 4 (2015), 703-778.
doi: 10.1016/B978-0-444-53766-9.00013-6. |
[28] |
J. A. Schumpeter, The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle, Transaction Books, New Brunswick, New Jersey, Translated from the 1911 original German, Theorie der wirtschaftlichen Entwicklung (translator: Redvers Opie), 1983. |
[29] |
S. Sorin,
Replicator dynamics: Old and new, Journal of Dynamics & Games, 7 (2020), 365-386.
doi: 10.3934/jdg.2020028. |
[30] | |
[31] |
J. Tinbergen, Income Distribution: Analysis and Policies, Elsevier, 1975. |



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