This paper presents a tractable endogenous two-sector growth model with non-Gorman intra-temporal preferences and directed technical change. One of the two consumption goods is a necessity, whereas the other is a luxury. If the economy starts with a low initial knowledge stock, households are...

In the course of growth, sectoral data features (i) changing relative expenditures of different sectors, (ii) non-constancy in the growth rates of relative prices and (iii) shifting relative TFP growth rates of sectors. This paper presents a simple model of directed technical change, which is...