Beyond balanced growth

Piyabha Kongsamut, Sergio Rebelo, Danyang Xie

Research output: Contribution to journalArticlepeer-review

346 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

ASJC Scopus subject areas

  • Economics and Econometrics

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