Equation 5 · Part 1 · Selection Accounting: The Price Equation Runs the Economy
Symbol d
What this part means
d is part of the quantity the equation computes from the expression on the right.
Its job in the formula
d is part of the quantity the equation computes from the expression on the right.
Full expression→Symbol d→Article meaning
The passage around this formula
Add one falsifiable assumption — that market share evolves under replicator dynamics with a linear selection gradient linking a firm’s productivity advantage to its realized share growth — and Proposition 2 states an economic reading of Fisher’s fundamental theorem of natural selection [ 2 ] : . The selection component of the growth rate of mean log productivity equals a selection-intensity coefficient times the share-weighted variance of log productivity across firms. The qualitative move is not new: Metcalfe applied Fisher’s principle to competing firms under replicator dynamics in the 1990s [ 4 ] , and Andersen used Price’s equation itself, by name, to split…
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Sources cited in the surrounding passage
- [2] The Genetical Theory of Natural Selection ↗
- [4] Competition, Fisher's Principle and Increasing Returns in the Selection Process ↗
- [5] Population Thinking, Price's Equation and the Analysis of Economic Evolution ↗
- [14] Reallocation, Firm Turnover, and Efficiency: Selection on Productivity or Profitability? ↗
- [10] Misallocation and Manufacturing TFP in China and India ↗
These citations provide research context; check each source for the exact claim it supports.