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Kuznets-Kaldor-puzzle, neutral structural change and independent preferences and technologies

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  • Stijepic, Denis
  • Wagner, Helmut

Abstract

The Kuznets-Kaldor stylized facts are one of the most striking empirical regularities of the development process in 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 which can explain the Kuznets-Kaldor-puzzle by independent preferences and technologies. Furthermore, we show by empirical evidence that this explanation is in line with 55% of structural change in the USA between 1948 and 1987.

Suggested Citation

  • Stijepic, Denis & Wagner, Helmut, 2009. "Kuznets-Kaldor-puzzle, neutral structural change and independent preferences and technologies," MPRA Paper 37162, University Library of Munich, Germany, revised 07 Mar 2012.
    • Handle: RePEc:pra:mprapa:37162
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    References listed on IDEAS

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    Cited by:

    1. Stijepic, Denis & Wagner, Helmut, 2008. "Impacts of Intermediate Trade on Structural Change," MPRA Paper 40841, University Library of Munich, Germany, revised 23 Aug 2012.

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    More about this item

    Keywords

    Kaldor facts; Kuznets facts; structural change; factor reallocation; sectors; balanced growth; unbalanced growth;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • D1 - Microeconomics - - Household Behavior
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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