Economics Articles

Essays on topical issues, latest developments in UK and global economies, and answers to readers questions

Evolutionary economics

Posted on November 12, 2018

Evolutionary economics is a branch of economics which views the economy through a dynamic model of constant change, adaptation, chaos and revival. Evolutionary economics was coined by radical economist Thorstein Veblen (1857-1929). Veblen was interested in psychological factors that often gave better explanations for economic behaviour than traditional rational choice theory. For example, Veblen noted …


America’s Rural – Urban Economic Divide

Posted on November 9, 2018

The political map of the US increasingly represents a divided America, and this political divide has roots in an increasing economic divide. In brief – rural areas tend to have lower average incomes (though also cheaper rent) higher rates of unemployment, declining population, reliance on one major employer and more concentrated on the primary sector …


The Catch-Up Effect

Posted on November 8, 2018

The catch-up effect (or convergence theory) suggests that poorer countries will experience a higher rate of economic growth and, over time, get closer to the income levels of the developed world.   In other words, there will be a reduction in the gap between the rich and the poor because low-income countries have more opportunities …