Conformism and structural change

Arbeitspapier

We study structural change in a simple, two-sector endogenous growth model and show that the presence of commodity-specific consumption externalities can be a source of structural change. When the degrees of consumption externalities are different between different goods, the two sectors grow at different rates, whereas the aggregate economy exhibits balanced growth in the sense that capital stock and expenditure grow at the same constant rate. Under the more restrictive condition such that the degrees of consumption externalities are the same, structural change does not occur. We also show that the dependence of the benchmark consumption levels on the past consumption is crucial for the divergent patterns of structural change across countries.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ISER Discussion Paper ; No. 827

Classification and Topics

• Classification: Wirtschaft ; Macroeconomics: Consumption; Saving; Wealth ; Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) ; Economic Development: General ; One, Two, and Multisector Growth Models
• Subject: Structural change ; Consumption externalities ; Two-sector growth model ; Kaldor facts ; Strukturwandel ; Nachfrageinterdependenz ; Mehr-Sektoren-Modell ; Neue Wachstumstheorie ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Horiy, Takeo ; Ikefuji, Masako ; Mino, Kazuo
• Event: Veröffentlichung
• (who): Osaka University, Institute of Social and Economic Research (ISER)
• (where): Osaka
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/92620
• Last update: 10.03.2025, 11:41 AM CET