Beyond Balanced Growth
Electronic Access:
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Summary:
Balanced growth models are commonly used in macroeconomics because they are consistent with the well-known Kaldor facts regarding economic growth. These models, however, are inconsistent with one of the most striking regularities of the growth process—the massive reallocation of labor from agriculture into manufacturing and services. This paper presents a simple model consistent with both the Kaldor facts and the dynamics of sectoral labor reallocation. The model shows that balanced growth can be consistent with structural change.
Series:
Working Paper No. 2001/085
Subject:
Agricultural sector Economic growth Economic sectors Financial services Labor Manufacturing Real interest rates Sustainable growth
English
Publication Date:
June 1, 2001
ISBN/ISSN:
9781451850758/1018-5941
Stock No:
WPIEA0852001
Pages:
21
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