A unified theory of structural change
This paper uses dynamic general equilibrium and computational methods, inspired by the multi-sector growth model structure in Stephen Turnovsky's work, to develop a theory that unifies two of the traditional explanations of structural change: sector-biased technical change and non-homothetic preferences. The theory is based on an overlapping-generations growth model with endogenous technical change and non-homothetic preferences. An expanding-variety setup with two different R&D technologies, agricultural, and non-agricultural, is employed. The analysis, based on numerical simulations, shows that the biased technical change hypothesis finds most support in the data. It also points to production-side specific factors, such as asymmetries in cross-sector knowledge spillovers, as explanatory factors of the bias in technical change.
Year of publication: |
2011
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Authors: | Dolores Guilló, María ; Papageorgiou, Chris ; Perez-Sebastian, Fidel |
Published in: |
Journal of Economic Dynamics and Control. - Elsevier, ISSN 0165-1889. - Vol. 35.2011, 9, p. 1393-1404
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Publisher: |
Elsevier |
Keywords: | Multi-sector growth model Structural change Agriculture and non-agriculture R&D Directed innovation Hon-homothetic preferences |
Saved in:
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