Ghiglino, Christian and Genna, Kevin and Nishimura, kazuo and Venditti, Alain (2024) Knowledge-based structural change. Economic Theory. DOI https://doi.org/10.1007/s00199-024-01587-4
Ghiglino, Christian and Genna, Kevin and Nishimura, kazuo and Venditti, Alain (2024) Knowledge-based structural change. Economic Theory. DOI https://doi.org/10.1007/s00199-024-01587-4
Ghiglino, Christian and Genna, Kevin and Nishimura, kazuo and Venditti, Alain (2024) Knowledge-based structural change. Economic Theory. DOI https://doi.org/10.1007/s00199-024-01587-4
Abstract
How will structural change unfold beyond the rise of services? Motivated by the observed dynamics within the service sector we propose a model of structural change in which productivity is endogenous and output is produced with two intermediate substitutable capital goods. In the productive sector the accumulation of specialized skills leads to an unbounded increase in TFP, as sector becoming asymptotically dominant. We are then able to recover the increasing shares of workers, the increasing real and nominal shares of the output observed in productive service and IT sectors in the US. Interestingly, the economy follows a growth path converging to a particular level of wealth that depends on the initial price of capital and knowledge. As a consequence, countries with the same fundamentals but lower initial wealth will be characterized by lower asymptotic wealth.
Item Type: | Article |
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Uncontrolled Keywords: | Two-sector model; Technological knowledge; Constant elasticity of substitution; non-balanced endogenous growth; Structural change; Kaldor and Kuznets facts; C62; E21; E22; E23; O41 |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Economics, Department of |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 01 Jul 2024 15:16 |
Last Modified: | 07 Aug 2024 17:00 |
URI: | http://repository.essex.ac.uk/id/eprint/38536 |