Farm Work, Home Work and International Productivity Differences

Richard Rogerson

Center for Development Economics from Department of Economics, Williams College

Abstract: Agriculture's share of economic activity is known to vary inversely with a country's level of development. This paper examines whether extensions of the neoclassical growth model can account for some important sectoral patterns observed in a current cross-section of countries and in the time series data for currently rich countries. We find that a straightforward agricultural extension of the neoclassical growth model restricted to match U.S. observations fails to account for important aspects of the cross-country data. We then introduce a version of the growth model with home production, and we show that this model performs much better.

Keywords: agriculture; home work; productivity differences; two-sector model (search for similar items in EconPapers)
JEL-codes: J20 O0 O11 O41 (search for similar items in EconPapers)
Date: 2001-05
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Related works:
Journal Article: Farm Work, Home Work, and International Productivity Differences (2004)
Working Paper: Farm Work, Home Work and International Productivity Differences (2001)
Working Paper: FARM WORK, HOME WORK AND INTERNATIONAL PRODUCTIVITY DIFFERENCES (2000)
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