Beyond Balanced Growth

Sergio Rebelo, Piyabha Kongsamut and Danyang Xie

No 2001/085, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; growth; structural change; Kaldor facts; GBG path; Kaldor fact; output share; employment share; GBG constraint; production structure; Sustainable growth; Real interest rates; Agricultural sector; Manufacturing (search for similar items in EconPapers)
Pages: 21
Date: 2001-06-01
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Citations: View citations in EconPapers (661)

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Related works:
Journal Article: Beyond Balanced Growth (2001)
Working Paper: Beyond Balanced Growth (2001)
Working Paper: Beyond Balanced Growth (1997)
Working Paper: Beyond Balanced Growth (1997)
Working Paper: Beyong Balanced Growth (1997)
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