Abstract
Balanced growth models are commonly used in macroeconomics because they are consistent with the well-known Kaldor facts regarding economic growth. These models, however, are inconsistent with one of the most striking regularities of the growth process-the massive reallocation of labour from agriculture into manufacturing and services. This paper presents a simple model consistent with both the Kaldor facts and the dynamics of sectoral labour reallocation.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 869-882 |
| Number of pages | 14 |
| Journal | Review of Economic Studies |
| Volume | 68 |
| Issue number | 4 |
| DOIs | |
| State | Published - 2001 |
Funding
Acknowledgements. We benefited from the detailed comments of the editor, Orazio Attanasio, and of two anonymous referees. We are also thankful to Robert Barro, Marianne Baxter, Robert Hall, Robert King, Henry Siu, Robert Solow, Rob Vigfusson, and to seminar participants at Bern, Boston University, Harvard, Michigan, Rochester, Virginia, and the World Bank for their suggestions. Research support from NSF grant SRB-9511916 and from a Hong Kong University of Science and Technology DAG grant is gratefully acknowledged.
ASJC Scopus subject areas
- Economics and Econometrics
