Esben Sloth Andersen

DRUID, Aalborg University, esa@business.auc.dk

Paper for the workshop on the History of Evolutionary Thought in Economics, Jena 26-28 August 1999 Max-Planck-Institute for Research into Economic Systems, Evolutionary Economics Unit

Abstract: In his book on Business Cycles Schumpeter declared that the railroad and its consequences for the economic system is the standard example of his analysis of capitalist evolution. This paper demonstrates that Schumpeter went quite far in the analysis of his case of ‘railroadization’ and in suggesting how his model could be adapted to it. Some of these suggestions are taken up in relation to modern evolutionary economics and to evolutionary-ecological analysis. The parameters of the logistic equation and the Lotka-Volterra equations are shown to be central variables in an evolutionary process that includes different types of economic agent. The specification of the roles in this process helps to redefine entrepreneurs, managers, and financiers. Furthermore, at new interpretation of the system-level dynamics is made, both in general and in relation to the case of railroadization.