Evolution of economics
What Is Evolutionary Economics? Evolutionary economics is a theory proposing that economic processes evolve and that economic behavior is determined both by individuals and society as a whole. The term was first coined by Thorstein Veblen (1857-1929), an American economist and sociologist. KEY TAKEAWAYS Evolutionary economics proposes that economic processes evolve and are determined both by individuals and society as a whole. It shuns the rational choice theory of traditional economics, arguing that psychological factors are key drivers of the economy. Economists in this field seek to explain economic behavior and progress in relation to evolution and evolutionary human instincts. Understanding Evolutionary Economics Traditional economic theories generally view people and governmental institutions as entirely rational actors. Evolutionary economics differs, shunning rational choice theory and instead ...