A Veblenian Critique of Nelson and Winter's Evolutionary Theory. Issue 4 (2nd October 2021)

• Record Type: Journal Article
• Authors: Jo, Tae-Hee
• Is Part Of: Journal of economic issues. Volume 55:Issue 4(2021)
• Page Start: 1101
• Page End: 1117
• Publication Date: 2021-10-02
• Subjects: Thorstein Veblen -- Richard Nelson -- Sydney Winter -- evolutionary theory -- institution; B15 -- B25 -- B52; Economics -- Periodicals; Economics; Économie politique -- Périodiques; Economie; ECONOMICS; ECONOMIC POLICY; Periodicals; 330.05
• DOI: 10.1080/00213624.2021.1994789
• Languages: English
• ISSNs: 0021-3624

Abstract

Abstract: It is often argued that Richard Nelson and Sydney Winter's evolutionary theory is an alternative to neoclassical economics and is compatible with or complementary to Veblenian evolutionary economics. This article subjects such arguments to critical examination. I argue that while Nelson and Winter's theory provides a more realistic account of the firm behavior than Marshallian-neoclassical theory does, it is a neoclassical evolutionary theory in much the same sense as Marshall's economics is quasi-evolutionary, "neo-classical" economics according to Veblen. Therefore, Nelson and Winter's evolutionary theory is in fact a protective modification of neoclassical economics and is antithetical to Veblen's evolutionary economics.