A theory of structural change that can fit the data

Timo Boppart, Simon Alder and Müller, Andreas
Authors registered in the RePEc Author Service: Andreas Müller

No 13469, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We study structural change in historical consumption expenditure of the United States, the United Kingdom, Canada and Australia over more than a century. To identify preference parameters from aggregate data, we characterize the most general class of preferences in a time-additive setting that admits aggregation of the intertemporal saving decision. We parametrize and estimate such intertemporally aggregable (IA) preferences and discuss their properties in a dynamic general equilibrium framework with sustained growth. Our preferences class is considerably more flexible than the Gorman form or PIGL/PIGLOG, giving rise to a good fit of the non-monotonic pattern of structural change.

Keywords: Structural change; Multi-sector growth model; Non-homothetic preferences; Relative price effects; Non-monotonic engel curves; Aggregation (search for similar items in EconPapers)
JEL-codes: E21 L16 O11 O14 (search for similar items in EconPapers)
Date: 2019-01
New Economics Papers: this item is included in nep-gro and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Related works:
Journal Article: A Theory of Structural Change That Can Fit the Data (2022)
Working Paper: A theory of structural change that can fit the data (2018)
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