Economic Complexity and Evolution Series Editors Uwe Cantner, Jena, Germany Kurt Dopfer, St. Gallen, Switzerland John Foster, Brisbane, Australia Andreas Pyka, Stuttgart, Germany Paolo Saviotti, Grenoble, France Research on the dynamics and evolution of economies and their subsystems has increasingly attracted attention during the past three decades. Micro-level activities related to innovation, imitation, adoption and adaptation are sources of often important impulses for abrupt as well as continuous, local as well as generic, systemic as well as modular changes in mesoeconomic and macroeconomic structures. These changes driven by selection and co-evolution, by path-dependencies and lock-ins as well as by transitions and jumps in turn feedback to the system’s microeconomic units. Out of this a highly interconnected system of interaction between agents, subsystems and levels of aggregation emerges and confronts researchers with the challenges to grasp, reduce and understand the complexity and her dynamics involved. The series “Economic Complexity and Evolution” addresses this wide field of economic and social phenomena and attempts to publish work which comprehensively discusses special topics therein allowing for a broad spectrum of different methodological viewpoints and approaches. More information about this series at http://www.springer.com/series/11583 Andreas Chai • Chad M. Baum Editors Demand, Complexity, and Long-Run Economic Evolution Editors Andreas Chai Griffith Business School Griffith University Gold Coast, QLD, Australia Chad M. Baum Institute of Food and Resource Economics University of Bonn Bonn, Germany ISSN 2199-3173 ISSN 2199-3181 (electronic) Economic Complexity and Evolution ISBN 978-3-030-02422-2 ISBN 978-3-030-02423-9 (eBook) https://doi.org/10.1007/978-3-030-02423-9 © Springer Nature Switzerland AG 2019 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. 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The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland Contents Introduction: Demand, Complexity, and Long-Run Economic Evolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chad M. Baum and Andreas Chai Part I 1 Re-thinking the Economic Possibilities of Our Grandchildren Work and Consumption in an Era of Unbalanced Technological Advance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Benjamin M. Friedman 17 Institutions Hold Consumption on a Leash: An Evolutionary Economic Approach to the Future of Consumption . . . . . . . . . . . . . . . . . . . . . . . . Jason Potts 37 The Mortgage Treadmill Versus Discretionary Spending and Enforced Leisure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Peter E. Earl 51 Ars Ultima Spes? Some Notes on the Unsustainability of Today’s Capitalism and Culture as a Possible Remedy . . . . . . . . . . . . . . . . . . . . Mario Cedrini and Marco Guerzoni 69 Part II New Perspectives on the Long-Run Evolution of Demand Tackling Keynes’ Question: A Look Back on 15 years of Learning to Consume . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Andreas Chai 93 The Evolution of Consumption and Its Welfare Effects . . . . . . . . . . . . . 117 Ulrich Witt v vi Contents How Where I Shop Influences What I Buy: The Importance of the Retail Format in Sustainable Tomato Consumption . . . . . . . . . . . 141 Chad M. Baum and Robert Weigelt Innovation, Structural Change and Multisectoral Economic Growth . . . . . 171 Isabel Almudi and Francisco Fatas-Villafranca Contributors Isabel Almudi University of Zaragoza, Zaragoza, Spain Chad M. Baum Institute of Food and Resource Economics, Rheinish-FriedrichWilhelms University Bonn, Bonn, Germany Mario Cedrini Department of Economics and Statistics “Cognetti de Martiis”, Università di Torino, Turin, Italy Andreas Chai Griffith Business School, Griffith University, Gold Coast, QLD, Australia Peter E. Earl School of Economics, University of Queensland, Brisbane, QLD, Australia Francisco Fatas-Villafranca University of Zaragoza, Zaragoza, Spain Benjamin M. Friedman Harvard University, Cambridge, MA, USA Marco Guerzoni Department of Economics and Statistics “Cognetti de Martiis”, Università di Torino, Turin, Italy ICRIOS, Bocconi University, Milan, Italy Jason Potts School of Economics, Finance & Marketing, RMIT University, Melbourne, Australia Robert Weigelt Thüringer ClusterManagement, Landesentwicklungsgesellschaft Thüringen mbH, Erfurt, Germany Ulrich Witt Max Planck Institute for Science of Human History, Jena, Germany Griffith Business School, Griffith University, Gold Coast, QLD, Australia vii