Structural change and generalized balanced growth

Jürgen Meckl ()

No 298, Discussion Papers, Series I from University of Konstanz, Department of Economics

Abstract: This paper addresses the criticism that balanced growth models are inconsistent with the dynamics of structural change typical for the process of economic growth. Using a sectoral disaggregated version of a researchdriven growth model, we develop the concept of a generalized balanced growth path (GBGP). The GBGP preserves decisive properties of the balanced growth path analyzed in aggregated growth models. Along a GBGP, aggregate variables grow at constant rates (balanced growth) while disaggregated variables grow at non-constant rates. The aggregated model's implications for the behavior of aggregates are robust with respect to structural dynamics.

Keywords: structural adjustment; innovation-based growth (search for similar items in EconPapers)
JEL-codes: O14 O41 (search for similar items in EconPapers)
Date: 1999
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Citations: View citations in EconPapers (20)

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Related works:
Working Paper: Structural Change and Generalized Balanced Growth (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:kondp1:298

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