Please use this identifier to cite or link to this item:
http://hdl.handle.net/2445/122518
Title: | Demand-based structural change and balanced economic growth |
Author: | Alonso Carrera, Jaime Raurich, Xavier |
Keywords: | Creixement econòmic Desenvolupament econòmic Aprenentatge organitzatiu Mercat de treball Economic growth Economic development Organizational learning Labor market |
Issue Date: | Dec-2015 |
Publisher: | Elsevier |
Abstract: | We analyze the equilibrium of a multi-sector exogenous growth model where the introduction of minimum consumption requirements drives structural change. We show that equilibrium dynamics simultaneously exhibit structural change and balanced growth of aggregate variables as is observed in US when the initial intensity of minimum consumption requirements is sufficiently small. This intensity is measured by the ratio between the aggregate value of the minimum consumption requirements and GDP and, therefore, it is inversely related with the level of economic development. Initially rich economies benefit from an initially low intensity of the minimum consumption requirements and, as a consequence, these economies end up exhibiting balanced growth of aggregate variables, while there is structural change. In contrast, initially poor economies suffer from an initially large intensity of the minimum consumption requirements, which makes the growth of the aggregate variables unbalanced during a very large period. These economies may never exhibit simultaneously balanced growth of aggregate variables and structural change. |
Note: | Versió postprint del document publicat a: https://doi.org/10.1016/j.jmacro.2015.10.005 |
It is part of: | Journal of Macroeconomics, 2015, vol. 46, num. December, p. 359-374 |
URI: | http://hdl.handle.net/2445/122518 |
Related resource: | https://doi.org/10.1016/j.jmacro.2015.10.005 |
ISSN: | 0164-0704 |
Appears in Collections: | Articles publicats en revistes (Economia) |
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