M. Setterfield, Cumulative causation, interrelatedness and the theory of economic growth: a reply to Argyrous and Toner, CAMB J ECON, 25(1), 2001, pp. 107-112
In responding to the comments of George Argyrous and Phillip Toner, this re
ply focuses on four areas of contention between myself and my critics. Firs
t, it is suggested that my original model places more weight on the growth-
enhancing characteristics of increasing specialisation in production than e
ither Argyrous or Toner acknowledge. Secondly, it is demonstrated that both
'formal' and 'verbal' models of cumulative growth typically place unwarran
ted emphasis on the importance of initial conditions. Thirdly, the evolutio
nary properties of my original model are defended against the claim that lo
ck-in renders it mechanical and deterministic. Finally, it is argued that m
athematically modelling open but structured social processes (such as econo
mic growth) should not be rejected as redundant in principle.