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Farm Work, Home Work and International Productivity Differences

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  • Richard Rogerson

    ()
    (Williams College)

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 restricted to match U.S. observations 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.

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Bibliographic Info

Paper provided by Department of Economics, Williams College in its series Center for Development Economics with number 170.

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Date of creation: May 2001
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Handle: RePEc:wil:wilcde:170

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Keywords: agriculture; home work; productivity differences; two-sector model;

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  20. repec:fth:stanho:e-92-3 is not listed on IDEAS
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  26. Stephen L. Parente & Richard Rogerson & Randall Wright, 2000. "Homework in Development Economics: Household Production and the Wealth of Nations," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 680-687, August.
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