IDEAS home Printed from https://ideas.repec.org/a/bla/kyklos/v47y1994i2p249-267.html
   My bibliography  Save this article

Demand Bias as an Explanation for Stuctural Change

Author

Listed:
  • Erich Gundlach

Abstract

An income elastic demand for services is usually regarded as one of the major explanations for the observed pattern of structural change in the world economy. Recent empirical findings cast some doubt on this demand-bias hypothesis. This paper presents a simple model of structural change that allows an assessment of the implications of alternative demand elasticities. The analysis focusses on restrictions for the set of consistent parameter values derived from demand theory. The results show that lagging productivity growth in the service sector and a homothetic or income inelastic demand for services do not suffice to explain the stylized facts.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Erich Gundlach, 1994. "Demand Bias as an Explanation for Stuctural Change," Kyklos, Wiley Blackwell, vol. 47(2), pages 249-267, May.
    • Handle: RePEc:bla:kyklos:v:47:y:1994:i:2:p:249-267
    DOI: 10.1111/j.1467-6435.1994.tb02258.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-6435.1994.tb02258.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-6435.1994.tb02258.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Winegarden, Calman R, 1984. "Women's Fertility, Market Work and Marital Status: A Test of the New Household Economics with International Data," Economica, London School of Economics and Political Science, vol. 51(204), pages 447-456, November.
    2. Locay, Luis, 1990. "Economic Development and the Division of Production between Households and Markets," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 965-982, October.
    3. Wolff, Edward N., 1985. "Unbalanced Growth, Capital Accumulation and Productivity Growth," Working Papers 85-19, C.V. Starr Center for Applied Economics, New York University.
    4. Victor R. Fuchs, 1980. "Economic Growth and the Rise of Service Employment," NBER Working Papers 0486, National Bureau of Economic Research, Inc.
    5. David L. Hammes, & Jean‐Jacques Rosa and & Herbert G. Grubel, 1989. "The National Accounts, Household Service Consumption and its Monetization," Kyklos, Wiley Blackwell, vol. 42(1), pages 3-15, February.
    6. Gundlach, Erich, 1993. "Die Dienstleistungsnachfrage als Determinante des wirtschaftlichen Strukturwandels," Open Access Publications from Kiel Institute for the World Economy 763, Kiel Institute for the World Economy (IfW Kiel).
    7. Schultz, T Paul, 1985. "Changing World Prices, Women's Wages, and the Fertility Transition: Sweden, 1860-1910," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1126-1154, December.
    8. Bergstrand, Jeffrey H, 1991. "Structural Determinants of Real Exchange Rates and National Price Levels: Some Empirical Evidence," American Economic Review, American Economic Association, vol. 81(1), pages 325-334, March.
    9. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. de Groot, H.L.F., 1998. "The Determination and Development of Sectoral Structure," Other publications TiSEM 1c90a88b-deb1-46ce-be3f-f, Tilburg University, School of Economics and Management.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gundlach, Erich, 1993. "Die Dienstleistungsnachfrage als Determinante des wirtschaftlichen Strukturwandels," Open Access Publications from Kiel Institute for the World Economy 763, Kiel Institute for the World Economy (IfW Kiel).
    2. Gundlach, Erich, 1991. "Ein einfaches Modell des Strukturwandels," Kiel Working Papers 470, Kiel Institute for the World Economy (IfW Kiel).
    3. Akbulut, Rahşan, 2011. "Sectoral Changes And The Increase In Women'S Labor Force Participation," Macroeconomic Dynamics, Cambridge University Press, vol. 15(2), pages 240-264, April.
    4. Tim Pawlowski & Christoph Breuer, 2012. "Expenditure elasticities of the demand for leisure services," Applied Economics, Taylor & Francis Journals, vol. 44(26), pages 3461-3477, September.
    5. Wildner, Susanne, 2001. "Quantifizierung der Preis– und Ausgabenelastizitäten für Nahrungsmittel in Deutschland: Schätzung eines LA/AIDS," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 50(05), pages 1-11.
    6. Wildner, S. & Cramon-Taubadel, S.v., 2000. "Die Bedeutung von Veränderungen der Nachfrage für die Wettbewerbsfähigkeit des Agrarsektors: erste Ergebnisse einer neuen Nachfrageschätzung," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 36.
    7. Pablo Garcia_S., 2000. "Income Inequality and the Real Exchange Rate," Econometric Society World Congress 2000 Contributed Papers 0849, Econometric Society.
    8. Michael Mesch, 1997. "Die Ursachen der Beschäftigungsentwicklung im Dienstleistungssektor," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 23(1), pages 11-54.
    9. Barnett, William A. & Erwin Diewert, W. & Zellner, Arnold, 2011. "Introduction to measurement with theory," Journal of Econometrics, Elsevier, vol. 161(1), pages 1-5, March.
    10. Balazs Egert & Carol Leonard, 2008. "Dutch Disease Scare in Kazakhstan: Is it real?," Open Economies Review, Springer, vol. 19(2), pages 147-165, April.
    11. Muhammad Ali Chaudhary & Eatzaz Ahmad & Abid A. Burki & Mushtaq A. Khan, 1999. "Industrial Sector Input Demand Responsiveness and Policy Interventions," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(4), pages 1083-1100.
    12. Thomas F. Crossley & Hamish W. Low, 2011. "Is The Elasticity Of Intertemporal Substitution Constant?," Journal of the European Economic Association, European Economic Association, vol. 9(1), pages 87-105, February.
    13. Aguilar, Mª. Isabel & Díaz, Bárbara, 2019. "Length of stay of international tourists in Spain: A parametric survival analysis," Annals of Tourism Research, Elsevier, vol. 79(C).
    14. Gary S. Becker & Kevin M. Murphy, 1994. "The Division of Labor, Coordination Costs, and Knowledge," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition, pages 299-322, National Bureau of Economic Research, Inc.
    15. Gibson, John & Kim, Bonggeun, 2013. "Quality, Quantity, and Nutritional Impacts of Rice Price Changes in Vietnam," World Development, Elsevier, vol. 43(C), pages 329-340.
    16. E.A. Selvanathan, 1987. "The Economic Theory of the Consumer," Economics Discussion / Working Papers 87-05, The University of Western Australia, Department of Economics.
    17. Gregory J. WERDEN, 1997. "Simulating The Effects Of Differentiated Products Mergers: A Practitioners' Guide," Department of Resource Economics Regional Research Project 967, University of Massachusetts.
    18. Hovhannisyan, Vardges & Stiegert, Kyle W. & Bozic, Marin, 2013. "On Endogeneity Of Retail Market Power In An Equilibrium Analysis: A Control Function Approach," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149830, Agricultural and Applied Economics Association.
    19. Barnett, William A. & Serletis, Apostolos, 2008. "Consumer preferences and demand systems," Journal of Econometrics, Elsevier, vol. 147(2), pages 210-224, December.
    20. Elizabeth Jane Casabianca, 2012. "Distributional effects of preferential and multilateral trade liberalization: the case of Paraguay," FIW Working Paper series 083, FIW.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:kyklos:v:47:y:1994:i:2:p:249-267. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley-Blackwell Digital Licensing or Christopher F. Baum (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0023-5962 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.