Konferenzbeitrag
Structural Change, Urban Congestion, and the End of Growth
This paper develops a two-sector R&D-based growth model with congestion effects from increasing urban population density. We show that endogenous technologicalprogress causes structural change if there are positive productivity spillovers from the modern to the traditional sector and Engel’s law holds. In turn, urban congestion effects cause a productivity slowdown in the modern sector. Eventually, economic growth may cease in the long-run. We also show that land dilution from a higher workforce may give rise to negative scale effects on GDP per capita. Finally, we investigate how the optimal land allocation depends on the strength of urban congestion effects.
- Language
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Englisch
- Bibliographic citation
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Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2011: Die Ordnung der Weltwirtschaft: Lektionen aus der Krise - Session: Economic Development and Structural Change ; No. B3-V3
- Classification
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Wirtschaft
Economic Development: General
Innovation; Research and Development; Technological Change; Intellectual Property Rights: General
Economic Growth and Aggregate Productivity: General
- Subject
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Congestion
Endogenous growth
Engel’s law
Structural change
Urbanization
- Event
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Geistige Schöpfung
- (who)
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Grossmann, Volker
- Event
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Veröffentlichung
- (when)
-
2011
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Konferenzbeitrag
Associated
- Grossmann, Volker
Time of origin
- 2011
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