Beyond Balanced Growth

Author/Editor:

Sergio Rebelo ; Piyabha Kongsamut ; Danyang Xie

Publication Date:

June 1, 2001

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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. 01/85

English

Publication Date:

June 1, 2001

ISBN/ISSN:

9781451850758/1018-5941

Stock No:

WPIEA0852001

Format:

Paper

Pages:

21

Please address any questions about this title to publications@imf.org