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Beyong Balanced Growth

  • Kongsamut, P.
  • Rebelo, S.
  • Xie, D.

One of the most striking regularities of the growth process is the massive reallocation of labor from agriculture into industry and services. Balanced growth models are commonly used in macroeconomics because they are consistent with the well-known Kaldor facts about economic growth. These models are, however, inconsistent with the structural change dynamics that are a central feature of economics development. This paper discusses models with generalized balanced growth paths.

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Paper provided by University of Rochester - Center for Economic Research (RCER) in its series RCER Working Papers with number 438.

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Length: 42 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:roc:rocher:438
Contact details of provider: Postal: University of Rochester, Center for Economic Research, Department of Economics, Harkness 231 Rochester, New York 14627 U.S.A.

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  1. Easterly, William & Rebelo, Sergio, 1993. "Fiscal policy and economic growth: An empirical investigation," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 417-458, December.
  2. Paul Romer & George Evans & Seppo Hokapohja, . "Growth Cycles," Home Pages _001, Stanford University.
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