Knowledge-based structural change

Kevin Genna, Christian Ghiglino, Kazuo Nishimura and Alain Venditti
Additional contact information
Kevin Genna: AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique
Christian Ghiglino: Essex Pathways, University of Essex - University of Essex
Alain Venditti: AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique

Post-Print from HAL

Abstract: How will structural change unfold beyond the rise of services? Motivated by the observed dynamics within the service sector we propose a model of structural change in which productivity is endogenous and output is produced with two intermediate substitutable capital goods. In the productive sector the accumulation of specialized skills leads to an unbounded increase in TFP, as sector becoming asymptotically dominant. We are then able to recover the increasing shares of workers, the increasing real and nominal shares of the output observed in productive service and IT sectors in the US. Interestingly, the economy follows a growth path converging to a particular level of wealth that depends on the initial price of capital and knowledge. As a consequence, countries with the same fundamentals but lower initial wealth will be characterized by lower asymptotic wealth.

Keywords: Two-sector model; Technological knowledge; Constant elasticity ofsubstitution; non-balanced endogenous growth; Structural change; Kaldor and Kuznets facts (search for similar items in EconPapers)
Date: 2024-06-19
Note: View the original document on HAL open archive server: https://hal.science/hal-04676099v1
References: Add references at CitEc
Citations:

Published in Economic Theory, 2024, ⟨10.1007/s00199-024-01587-4⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Knowledge-based structural change (2024)
Working Paper: Knowledge-Based Structural Change (2021)
Working Paper: Knowledge-Based Structural Change (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04676099

DOI: 10.1007/s00199-024-01587-4

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().