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Endogenous Growth and Structural Change in a Dynamic Input-Output Model

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  • Bart Los

Abstract

This paper introduces a simple dynamic input-output model, in which some of the most important properties of recent endogenous growth theory are included: innovation, knowledge spillovers, constant returns to scale at the macro level, and full employment. The wish to keep the hybrid model as tractable as possible (despite the industry detail) caused some substantial simplifications: contrary to most endogenous growth models, the model lacks an explicit microeconomic foundation and disregards any opportunity for instantaneous substitution. After the constituent equations are presented, the long-run behavior of the model is studied by a number of computer simulations for a hypothetical economy. The paper concludes with some illustrations of the potential practical power of future interindustry endogenous growth models in integrating issues like technology, investment, trade and education.

Suggested Citation

  • Bart Los, 2001. "Endogenous Growth and Structural Change in a Dynamic Input-Output Model," Economic Systems Research, Taylor & Francis Journals, vol. 13(1), pages 3-34.
    • Handle: RePEc:taf:ecsysr:v:13:y:2001:i:1:p:3-34
    DOI: 10.1080/09535310120026229
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    Cited by:

    1. Rutger Hoekstra & Marco Janssen, 2006. "Environmental responsibility and policy in a two-country dynamic input-output model," Economic Systems Research, Taylor & Francis Journals, vol. 18(1), pages 61-84.
    2. Casas, Pablo & Christou, Tryfonas & Ferreira, Valeria & García Rodríguez, Abián & Lazarou, Nicholas Joseph & Pedauga, Luis Enrique & Rueda Cantuche, José Manuel & Bernard, Hannah & Volpe, Roberto & Ne, 2025. "The RHOMOLO and FIDELIO interim evaluation of the impact of Horizon Europe," MPRA Paper 124687, University Library of Munich, Germany.
    3. Bart Los & Bart Verspagen, 2006. "The Evolution Of Productivity Gaps And Specialization Patterns," Metroeconomica, Wiley Blackwell, vol. 57(4), pages 464-493, November.
    4. Ana-Isabel Guerra & Ferran Sancho, 2013. "A Linear Price Model With Extractions," EcoMod2013 5113, EcoMod.
    5. Belegri-Roboli, Athena & Michaelides, Panayotis G. & Markaki, Maria, 2005. "Labour Cost And Employment Multipliers: The Case Of Greece (1988-1998)," MPRA Paper 74428, University Library of Munich, Germany.
    6. Bart Los, 2004. "Identification of strategic industries: A dynamic perspective," Papers in Regional Science, Springer;Regional Science Association International, vol. 83(4), pages 669-698, October.
    7. Robert Stehrer, 2002. "Dynamics of Trade Integration and Technological Convergence," Economic Systems Research, Taylor & Francis Journals, vol. 14(3), pages 219-244.
    8. Pier-Paolo Saviotti & Andreas Pyka¤ & Bogang Jun, 2020. "Diversification, structural change, and economic development," Journal of Evolutionary Economics, Springer, vol. 30(5), pages 1301-1335, November.
    9. Margarian, Anne, 2024. "Analysing evolutionary growth regimes of regional economies and transformative shocks: Proposal for a regression-based counterfactual simulation approach to local inter-industry structural change," Structural Change and Economic Dynamics, Elsevier, vol. 70(C), pages 18-32.
    10. Pan, Haoran, 2006. "Dynamic and endogenous change of input-output structure with specific layers of technology," Structural Change and Economic Dynamics, Elsevier, vol. 17(2), pages 200-223, June.
    11. repec:dgr:rugccs:200202 is not listed on IDEAS
    12. repec:dgr:rugccs:200301 is not listed on IDEAS
    13. Henryk Gurgul & Łukasz Lach, 2016. "Simulating evolution of interindustry linkages in endogenous dynamic IO model with layers of techniques," Metroeconomica, Wiley Blackwell, vol. 67(4), pages 632-666, November.
    14. Volodymyr Ryaboshlyk, 2006. "A dynamic input-output model with explicit new and old technologies: an application to the UK," Economic Systems Research, Taylor & Francis Journals, vol. 18(2), pages 183-203.
    15. Junyi Wu & Taku Ishiro, 2024. "Simulation analysis of the damage and recovery process in natural disasters: a case study of high-speed railways in Sichuan Province, China," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 13(1), pages 1-21, December.
    16. Tsutomu Harada, 2015. "Changing Productive Relations, Linkage Effects, and Industrialization," Economic Systems Research, Taylor & Francis Journals, vol. 27(3), pages 374-390, September.

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