72nd International Atlantic Economic Conference

October 20 - 23, 2011 | Washington, USA

The role of passionate individuals in economic development

Sunday, 23 October 2011: 12:35 PM
Roman Zakharenko, Ph.D. , International College of Economics and Finance, NRU Higher School of Economics, Moscow, Russia
In this paper, I merge two theories – that 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 the theory are also discussed.