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Structural change and the Kaldor facts in a growth model with relative price effects and non-Gorman preferences

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  • Boppart, Timo

Abstract

Growth is associated with (i) shifts in the sectoral structure of the economy, (ii) changes in relative prices and (iii) the Kaldor facts. Moreover, (iv) cross-sectional data shows systematic differences in the expenditure structure across income groups. This paper presents a growth model which is consistent with (i)-(iv) at the same time, a result the existing literature has not been able to generate. The theory is simple and parsimonious and contains an analytical solution. The model s functional form and cross-sectional data are exploited to estimate the relative importance of price and income effects as determinants of the structural change.

Suggested Citation

  • Boppart, Timo, 2013. "Structural change and the Kaldor facts in a growth model with relative price effects and non-Gorman preferences," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79777, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc13:79777
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    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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