Structural change with dynamics of capital income share

Yue Liu

Economics Letters, 2012, vol. 116, issue 3, 597-600

Abstract: This paper highlights a new fact about structural change by focusing on the dynamics of the capital income share at the sectoral level. That is, the capital income share in services decreases steadily while that in the manufacturing sector increases over time. I develop a two-sector growth model where capital intensity in each sector can change endogenously with capital deepening. The change in capital intensities further induces a reallocation of labor and capital across sectors.

Keywords: Structural change; Capital intensity; Two-sector growth model (search for similar items in EconPapers)
JEL-codes: O4 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:116:y:2012:i:3:p:597-600

DOI: 10.1016/j.econlet.2012.05.055

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