Capital Deepening and Non-Balanced Economic Growth

Acemoğlu, Daron; Guerrieri, Veronica

doi:10.2139/ssrn.924498

Cited by 101 publications

(124 citation statements)

References 45 publications

(86 reference statements)

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“…Three further related models are worth discussing at this point: Acemoglu and Guerrieri (2006), Ngai and Pissarides (2007) and Foellmi and Zweimüller (2002). All of them show that, provided certain conditions hold, balanced growth at the aggregate level is consistent with structural change at the level of sectors.…”

Section: Multisector Growth Modelsmentioning

confidence: 98%

“…All of them show that, provided certain conditions hold, balanced growth at the aggregate level is consistent with structural change at the level of sectors. Acemoglu and Guerrieri (2006) analyze a two‐sector model of economic growth. Their aim is to provide a supply‐side explanation for structural change (similar to Baumol (1967)) based on differences in factor proportions together with capital deepening.…”

Section: Multisector Growth Modelsmentioning

confidence: 99%

“…This is vividly criticized by Harberger (1998), who emphasizes the diversity of technological developments and growth performances across industries and sectors. More recent growth models pick up this criticism and reconcile balanced growth at the aggregate level with structural change in an endogenous growth framework, where structural change may be induced either by the supply side as in Acemoglu and Guerrieri (2006) or by the demand side as in Foellmi and Zweimüller (2002). The model of Ngai and Pissarides (2007) is able to explain a hump‐shaped development of the employment share of sectors.…”

Section: Synthesismentioning

confidence: 99%

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Productivity and Structural Change: A Review of the Literature

Krüger

2008

Journal of Economic Surveys

134

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This paper is a survey of the existing research on structural change at various levels of aggregation with a special focus on the relation to productivity and technological change. The exposition covers the research concerning the development of the three main sectors of the private economy, multisector growth models and recent evolutionary theories of structural change. Empirical studies of the reallocation of market or sector shares as a result of differential productivity developments are also discussed. The synthesis emphasizes the crucial interaction of supply-and demand-side forces in shaping structural change.

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Section: Multisector Growth Modelsmentioning

confidence: 98%

Section: Multisector Growth Modelsmentioning

confidence: 99%

Section: Synthesismentioning

confidence: 99%

See 1 more Smart Citation

Productivity and Structural Change: A Review of the Literature

Krüger

2008

Journal of Economic Surveys

134

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“…Among others, the sectors can be defined according to technology (e.g. Caselli and Coleman, ; Ngai and Pissarides, ; Peneder, ; Acemoglu and Guerrieri, ), demand characteristics (e.g. Kongsamut et al ., ; Foellmi and Zweimüller, ), the nature of output, the nature of intermediate inputs, or the specificities of innovation (e.g.…”

Section: The Empirical Facts Of Structural Changementioning

confidence: 99%

The Drivers of Structural Change

Neuss

2018

Journal of Economic Surveys

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The main goal of this paper is to provide an integrated survey of the literature devoted to identifying the drivers of structural change, broadly defined as the process of reallocation of economic activity across the three broad sectors agriculture, manufacturing and services. Using the GGDC 10‐Sector Database, this paper first presents the empirical facts associated with structural change in different regions of the world – that is Europe and the USA, Asia, Latin America, and Africa – then reviews four determinants of structural change: (i) changes in income, (ii) changes in relative (sectoral) prices, (iii) changes in input–output linkages and (iv) changes in comparative advantage(s) via globalization and trade.

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“…This asymmetric introduction of human capital allows us to prove that the three cities will, at equilibrium, experience heterogeneous growth rates. Proceeding thus, we adapt the formulation of Acemoglu and Guerrieri (2008) and, following the strategy of Ghiglino et al (2018), we obtain endogenous growth through a standard mechanism based on human capital.…”

Section: Introductionmentioning

confidence: 99%

A theory of heterogeneous city growth

Ghiglino

Nishimura

Venditti

2020

Int J of Economic Theory

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We consider an economy with three cities producing different outputs. Two cities produce intermediate goods, a type 1 city producing an intermediate “agricultural” good with capital and labor only, and a type 2 city producing an intermediate “industrial” good with capital, labor, and human capital. A type 3 city produces the final good which is obtained from the two intermediate goods and labor. The asymmetric introduction of human capital allows us to prove that the three cities experience, at equilibrium, heterogeneous endogenous growth rates which are proportional to the growth rate of human capital. We show that the “industrial” type 2 city is characterized by the larger growth rate while the “agricultural” type 1 city experiences the lower growth rate, and thus the type 3 city is characterized by a growth rate which is a convex combination of the two former growth rates. This implies that the relative size in terms of output of the “agricultural” city decreases over time. This property allows us to recover the empirical fact that most non‐agricultural production occurs in growing metropolitan areas. But, simultaneously, as we prove that total labor employed in each city is proportional to the total population, the relative population size distribution of cities is constant over time, as shown in empirical studies.

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Capital Deepening and Non-Balanced Economic Growth

Abstract: This paper constructs a model of non-balanced economic growth. The

Cited by 101 publications

References 45 publications

Productivity and Structural Change: A Review of the Literature

Productivity and Structural Change: A Review of the Literature

The Drivers of Structural Change

A theory of heterogeneous city growth

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