differences in factor proportions and capital deepening. Capital deepening tends to increase the relative output of the sector … with a greater capital share, but simultaneously induces a reallocation of capital and labor away from that sector. We … models, non-balanced growth is shown to be consistent with an asymptotic equilibrium with constant interest rate and capital …

differences in factor proportions and capital deepening. Capital deepening tends to increase the relative output of the sector … with a greater capital share, but simultaneously induces a reallocation of capital and labor away from that sector. We … models, non-balanced growth is shown to be consistent with an asymptotic equilibrium with constant interest rate and capital …

differences in factor proportions and capital deepening. Capital deepening tends to increase the relative output of the sector … with a greater capital share, but simultaneously induces a reallocation of capital and labor away from that sector. We … models, non-balanced growth is shown to be consistent with an asymptotic equilibrium with constant interest rate and capital …

industry but also in other industries, and it accumulates and depreciates like capital. Another is that, because of the …

and also encompasses these two known mechanisms. Our model shows that sectoral differences in the degree of capital …-labor substitutability - a new mechanism - are a driving force for structural change. When the exibility to combine capital and labor differs … intensive in the input that becomes more abundant. As a result, growth rates of sectoral capital-labor ratios can differ and, if …

and also encompasses these two known mechanisms. Our model shows that sectoral differences in the degree of capital …–labor substitutability-a new mechanism-are a driving force for structural change. When the flexibility to combine capital and labor differs … intensive in the input that becomes more abundant. As a result, growth rates of sectoral capital–labor ratios can differ and, if …

degree of capital-labor substitutability - a new mechanism - are a driving force for structural change. When the flexibility … to combine capital and labor differs across sectors, a factor rebalancing effect is operative. It tends to make … sectoral capital-labor ratios can differ and, if this effect dominates, shares of each factor used in a given sector can move …