Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/21485
Authors: 
Foellmi, Reto
Zweimüller, Josef
Year of Publication: 
2002
Series/Report no.: 
IZA Discussion paper series 472
Abstract: 
We present a model in which two of the most important features of the long-run growth process are reconciled: the massive changes in the structure of production and employment; and the Kaldor facts of economic growth. We assume that households expand their consumption along a hierarchy of needs and firms introduce continuously new products. In equilibrium industries with an expanding and those with a declining employment share coexist, and each such industry goes (or has already gone) through a cycle of take-off, maturity, and stagnation. Nonetheless macroeconomic aggregates grow pari passu at a constant rate.
Subjects: 
Kaldor facts
balanced growth
structural change
innovation
hierarchic preferences
demand externalities
multiple equilibria
JEL: 
L16
O31
O11
O40
D91
Document Type: 
Working Paper

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