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Farm Work, Home Work, and International Productivity Differences

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  • Douglas Gollin

    (Williams College)

  • Stephen L. Parente

    (University of Illinois, Urbana-Champaign)

  • Richard Rogerson

    (Arizona State University)

Abstract

Agriculture's share of economic activity is known to vary inversely with a country's level of development. This paper examines whether extensions of the neoclassical growth model can account for some important sectoral patterns observed in a current cross-section of countries and in the time series data for currently rich countries. We find that a straightforward agricultural extension of the neoclassical growth model fails to account for important aspects of the cross-country data. We then introduce a version of the growth model with home production, and we show that this model performs much better. (Copyright: Elsevier)

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File URL: http://dx.doi.org/10.1016/j.red.2004.05.003
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Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.

Volume (Year): 7 (2004)
Issue (Month): 4 (October)
Pages: 827-850

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Handle: RePEc:red:issued:v:7:y:2004:i:4:p:827-850

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