Structural Change and the Kaldor Facts of Economic Growth

Zweimüller, Josef and Reto Foellmi
Authors registered in the RePEc Author Service: Josef Zweimüller ()

No 3300, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We present a model in which two of the most important features of the long-run growth process are reconciled: the massive changes in the structure of production and employment; and the Kaldor facts of economic growth. We assume that households expand their consumption along a hierarchy of needs and firms continuously introduce new products. In equilibrium industries with an expanding and those with a declining employment share co-exist, and each such industry goes (or has already gone) through a cycle of take-off, maturity, and stagnation. Nonetheless macroeconomic aggregates grow pari passu at a constant rate.

Keywords: Demand externalities; Kaldor facts; Balanced growth; Structural change; Innovation; Hierarchic preferences; Multiple equilibria (search for similar items in EconPapers)
JEL-codes: D91 L16 O11 O31 O40 (search for similar items in EconPapers)
Date: 2002-04
New Economics Papers: this item is included in nep-dev and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Related works:
Working Paper: Structural Change and the Kaldor Facts of Economic Growth (2006)
Working Paper: Structural Change and the Kaldor Facts of Economic Growth (2002)
Working Paper: Structural Change and the Kaldor Facts of Economic Growth
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