New Goods and the Transition to a New Economy
AbstractThe U.S. went through a remarkable structural transformation between 1800 and 2000. A precipitous decline in the importance of agricultural goods in the economy was matched by the rapid ascent of a plethora of new non-agricultural goods and services. A competitive model is presented here where consumption evolves along the extensive margin. This lessens the need to rely on satiation points, subsistence levels of consumption, and the like to explain agriculture’s demise. The analysis suggests that between 1800 and 2000 economic welfare grew by at least 1.5% a year, and may be as much as 10% annually, the exact number depending upon the metric preferred. Copyright Springer 2005
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Bibliographic InfoArticle provided by Springer in its journal Journal of Economic Growth.
Volume (Year): 10 (2005)
Issue (Month): 2 (06)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=102931
technological progress; structural change; new goods; welfare indices; E13; O11; O41;
Other versions of this item:
- Jeremy Greenwood & Gokce Uysal, 2004. "New Goods and the Transition to a New Economy," NBER Working Papers 10793, National Bureau of Economic Research, Inc.
- Jeremy Greenwood & Gokce Uysal, 2003. "New Goods and the Transition to a New Economy," Economie d'Avant Garde Research Reports 5, Economie d'Avant Garde.
- E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
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