Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/180232 
Year of Publication: 
2018
Series/Report no.: 
CESifo Working Paper No. 6970
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
To explain the process of development historically documented, we consider a model with three economic sectors (agriculture, manufacturing and services) characterized by different productivity gains and by saturation levels in the demands of agricultural and manufactured goods. Our parsimonious model captures within a single framework the process of development which is characterized by the structural changes in the workforce across sectors, variable growth rates (an initial “Malthusian regime” exhibiting slow growth, a fast growth regime after a takeoff, and a gradual slow down leading to a possible new stagnation) and the relative evolutions of prices across sectors. Reasonable calibration generates results quantitatively close to the observed empirical facts.
Subjects: 
growth mode
structural change
unified growth
economic development
saturation of demands
JEL: 
O10
O40
N10
Document Type: 
Working Paper
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