Changes in Sectoral Composition Associated with Economic Growth
Abstract
In this paper, the author uses dynamic general equilibrium methods to examine the interrelationship between sectoral composition and growth. She shows that growth is affected by sectoral composition and vice versa. The model is basically a Solow model of sustained growth with multiple consumption goods and nonhomothetic preferences. Each consumption good is produced using different factor intensities. The rate of exogenous technological change is different in each sector. Nonhomotheticity of preferences drives the result that sectoral composition affects growth rates. Copyright 1997 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.Download Info
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Bibliographic Info
Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.
Volume (Year): 38 (1997)
Issue (Month): 2 (May)
Pages: 431-52
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