Beyond balanced growth

Piyabha Kongsamut, Sergio Rebelo, Danyang Xie

Research output: Contribution to journalArticlepeer-review

508 Scopus citations

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 languageEnglish (US)
Pages (from-to)869-882
Number of pages14
JournalReview of Economic Studies
Volume68
Issue number4
DOIs
StatePublished - 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

Fingerprint

Dive into the research topics of 'Beyond balanced growth'. Together they form a unique fingerprint.

Cite this