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Farm Work, Home Work and International Productivity Differences

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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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File URL: http://web.williams.edu/Economics/wp/Gollin_Farm_Work_Home_Work_and_International_Productivity_Differences.pdf
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Bibliographic Info

Paper provided by Department of Economics, Williams College in its series Department of Economics Working Papers with number 2002-08.

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Length: 40 pages
Date of creation: Mar 2001
Date of revision:
Publication status: published in Review of Economic Dynamics, 2004, vol. 7, issue 4, pages 827-850
Handle: RePEc:wil:wileco:2002-08

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