Structural Change, Urban Congestion, and the End of Growth

Volker Grossmann

VfS Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis from Verein für Socialpolitik / German Economic Association

Abstract: This paper develops a two-sector R&D-based growth model with congestion effects from increasing urban population density. We show that endogenous technologicalprogress causes structural change if there are positive productivity spillovers from the modern to the traditional sector and Engel’s law holds. In turn, urban congestion effects cause a productivity slowdown in the modern sector. Eventually, economic growth may cease in the long-run. We also show that land dilution from a higher workforce may give rise to negative scale effects on GDP per capita. Finally, we investigate how the optimal land allocation depends on the strength of urban congestion effects.

Keywords: Congestion; Endogenous growth; Engel’s law; Structural change; Urbanization (search for similar items in EconPapers)
JEL-codes: O10 O30 O40 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/48712/1/VfS_2011_pid_652.pdf (application/pdf)

Related works:
Journal Article: Structural Change, Urban Congestion, and the End of Growth (2013)
Working Paper: Structural Change, Urban Congestion, and the End of Growth (2011)
Working Paper: Structural Change, Urban Congestion, and the End of Growth (2011)
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:zbw:vfsc11:48712

Access Statistics for this paper

More papers in VfS Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis from Verein für Socialpolitik / German Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().