Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/84873
Authors: 
Caspari, Volker
Eschenhof-Kammer, Sabine
Pertz, Klaus
Year of Publication: 
2012
Series/Report no.: 
Darmstadt Discussion Papers in Economics 215
Abstract: 
We use the two-sector specific factors model, which is known from the theory of international trade, in a growth context to describe major trends of long-run economic development. The endogenous technical progress functions establish the link between the agricultural and the manufacturing sector through the ratio of agricultural to total employment, which is determined by the savings propensities of wage-earners, landlords and capitalists, and by the investment ratio in manufacturing. Without reference to more complicated micro-based models of human capital accumulation highlighting changes in preferences of households and/ or shifts in attitudes of firms towards education, the calibrated two-sector specific factors model can replicate major historical trends and structural turnarounds.
Subjects: 
economic growth
technical change
distribution of income
Industrial Revolution
JEL: 
E13
N1
O41
Document Type: 
Working Paper

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