International College of Economics and Finance

Research seminar by Roman Zakharenko (ICEF): The Role of Passionate Individuals in Economic Development

Roman ZakharenkoThursday, February 17 at 4.30 pm International College of Economics held the Research seminar.
Venue: Pokrovski Bulvar, 11, Room Zh-822
Speaker: Roman Zakharenko (ICEF)
Theme: «The Role of Passionate Individuals in Economic Development» (pdf version)



Abstract: In this paper, I merge two theories – theory of “passionate individuals” by Gumilev [2009(1989)] and Memetics by Dawkins [1976] – to develop a formal growth theory that states that societies become more developed when their members have more intrinsic motivation to solve problems of social importance (i.e. make “cultural contributions”). Individuals derive utility from genetic fitness (i.e. the number of surviving children) as well as from cultural fitness, defined as the amount of appreciation (“honor”) of one’s cultural contribution by future generations. To make a cultural contribution, one must study/honor cultural contributions of the past, which leads to multiple steady states. In the survival steady state, individuals expect that no one in the future will be interested in their cultural contribution, which makes them allocate all energy onto maximization of genetic fitness and care little about cultural contributions of the past. In the passionate steady state, individuals expect high appreciation of their cultural contribution and thus spend a lot of energy onto making such a contribution, which makes them highly appreciate cultural contributions of the past. Empirical implications of theory are also discussed.

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