Structural change , Engel ' s consumption cycles and Kaldor ' s facts of economic growth
نویسندگان
چکیده
7 We present a model of structural change due to non-linear Engel-curves for consumer 8 goods. Goods are sequentially introduced starting out as a luxury with high income 9 elasticity and ending up as a necessity with low income elasticity. Although this leads to 10 rising and falling sectoral employment shares, the model exhibits a steady growth path 11 along which the Kaldor facts are satisfied. Extending the basic model to the case of 12 endogenous product innovations shows that complementarities between aggregate and 13 sectoral growth may give rise to multiple equilibria. 14 JEL classification: O40, O11, O31, D91, L16 15
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Structural Change and the Kaldor Facts of Economic Growth
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