A Theory of Structural Change That Can Fit the Data

We study structural change in the historical consumption expenditure of United States, Kingdom, Canada, and Australia over more than a century. characterize most general class preferences time-additive setting that admits aggregation saving decision allows us to identify preference parameters from aggregate data. parameterize estimate such intertemporally aggregable (IA) discuss their properties dynamic equilibrium framework with sustained growth. Our is considerably flexible Gorman form or PIGL, giving rise good fit non-monotonic pattern change. (JEL C51, E21, L16, N10)