Structural Change and the Kaldor Facts of Economic Growth

Reto Foellmi and Josef Zweim�ller
Authors registered in the RePEc Author Service: Josef Zweimüller (josef.zweimueller@econ.uzh.ch)

No 111, IEW - Working Papers from Institute for Empirical Research in Economics - University of Zurich

Abstract: We present a model in which two of the most important features of the long-run growth process are reconciled: the massive changes in the structure of production and employment; and the Kaldor facts of economic growth. We assume that households expand their consumption along a hierarchy of needs and firms introduce continuously new products. In equilibrium industries with an expanding and those with a declining employment share co-exist, and each such industry goes (or has already gone) through a cycle of take-off, maturity, and stagnation. Nonetheless macroeconomic aggregates grow pari passu at a constant rate.

Keywords: Kaldor facts; balanced growth; structural change; innovation; hierarchic preferences; demand externalities; multiple equilibria. (search for similar items in EconPapers)
JEL-codes: D91 L16 O11 O31 O40 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Related works:
Working Paper: Structural Change and the Kaldor Facts of Economic Growth (2006)
Working Paper: Structural Change and the Kaldor Facts of Economic Growth (2002)
Working Paper: Structural Change and the Kaldor Facts of Economic Growth (2002)
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