Kuznets-Kaldor-puzzle, neutral structural change and independent preferences and technologies

Stijepic, Denis and Wagner, Helmut (2009): Kuznets-Kaldor-puzzle, neutral structural change and independent preferences and technologies.

Abstract

The Kuznets-Kaldor stylized facts are one of the most striking empirical regularities of the development process in industrialized countries: While massive factor reallocation across technologically distinct sectors takes place, the aggregate ratios of the economy are quite stable. This implies that cross-technology factor reallocation has a relatively weak impact on the aggregates, which is a puzzle from a theoretical point of view. We provide a model which can explain the Kuznets-Kaldor-puzzle by independent preferences and technologies. Furthermore, we show by empirical evidence that this explanation is in line with 55% of structural change in the USA between 1948 and 1987.

• Item Type: MPRA Paper
• Language: English
• Keywords: Kaldor facts, Kuznets facts, structural change, factor reallocation, sectors, balanced growth, unbalanced growth
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models; E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E13 - Neoclassical; D - Microeconomics > D1 - Household Behavior and Family Economics; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O14 - Industrialization ; Manufacturing and Service Industries ; Choice of Technology

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