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The Kuznets-Kaldor-Puzzle and Neutral Cross-Capital-Intensity Structural Change

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  • Helmut Wagner
  • Denis Stijepic

Abstract

The Kuznets-Kaldor stylized facts are one of the most striking empirical observations about the development process in the industrialized countries: While massive factor reallocation across technologically distinct sectors takes place, the aggregate ratios of the economy are quite stable. This implies that cross-technology factor reallocation has a relatively weak impact on the aggregates, which is a puzzle from a theoretical point of view. We provide a model that can explain this puzzle. Furthermore, we show by empirical evidence that this model is in line with 55% of structural change.

Suggested Citation

  • Helmut Wagner & Denis Stijepic, 2010. "The Kuznets-Kaldor-Puzzle and Neutral Cross-Capital-Intensity Structural Change," DEGIT Conference Papers c015_016, DEGIT, Dynamics, Economic Growth, and International Trade.
    • Handle: RePEc:deg:conpap:c015_016
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    References listed on IDEAS

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    More about this item

    Keywords

    neoclassical growth models; balanced growth; structural change; Kaldor facts; labor reallocation across sectors; sector technology;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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