Economic Growth and Sectoral Change under Resource Reallocation Costs

Arbeitspapier

A general growth model with explicit resource reallocation costs is set up. A new feature is the property of hysteresis (i.e. a continuum of stationary equilibria) in closed-economy growth models. Employing a linear model the hysteresis range and the consequences for the long-run growth rate are determined analytically. The most important conclusions are the following: (1) An economy’s long-run position may depend critically on the initial intersectoral allocation pattern as well as on the efficiency of the resource reallocation sector; (2) if we interpret the resource reallocation sector as a specific part of the education sector, there is a straightforward possibility for the government to reduce the range of hysteresis and hence the dependence on initial conditions; (3) international trade is an important device to overcome the negative consequences of high resource reallocation costs for long-run growth.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Economics Working Paper Series ; No. 03/30

Klassifikation und Themen

• Klassifikation: Wirtschaft
• Thema: Sectoral change ; economic growth ; resource reallocation costs ; hysteresis ; multiplicity of equilibria ; Subsistenzwirtschaft ; Wachstumstheorie ; Wirtschaftliche Konvergenz ; Theorie ; Entwicklungsländer

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Steger, Thomas M.
• Ereignis: Veröffentlichung
• (wer): ETH Zurich, CER-ETH - Center of Economic Research
• (wo): Zurich
• (wann): 2003

Weitere Informationen

• DOI: doi:10.3929/ethz-a-004640329
• Handle: http://hdl.handle.net/10419/171474
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ