Stijepic, Denis (2016): A topological approach to structural change analysis and an application to longrun labor allocation dynamics.

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Abstract
A great part of economic literature deals with structural changes, i.e. longrun changes in the structure of economic aggregates. While the standard literature relies on the mathematical branches of analysis and algebra for modeling structural change and describing the relevant empirical evidence, we choose a topological approach, which relies on the notions of selfintersection and mutual intersection of trajectories. We discuss all the methodological and mathematical aspects of this approach and show that it is applicable to a wide range of classical topics and papers of growth and development theory. Then, we apply it for studying a specific type of structural change, namely, the longrun labor reallocation across sectors: we (a) elaborate new empirical evidence stating that mutual intersection and nonselfintersection are stylized facts of longrun labor reallocation, (b) suggest and discuss theoretical explanations of nonselfintersection, and (c) discuss mathematical methods for explaining mutual intersection by using standard structural change models. Overall, our approach generates new evidence, new critique points of the previous structural change literature, new theoretical arguments, and a wide range of new research topics.
Item Type:  MPRA Paper 

Original Title:  A topological approach to structural change analysis and an application to longrun labor allocation dynamics 
Language:  English 
Keywords:  structural change; dynamics; long run; trajectory; intersection; selfintersection; differential equations; geometry; topology; labor; allocation; savings; functional income distribution 
Subjects:  C  Mathematical and Quantitative Methods > C6  Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61  Optimization Techniques ; Programming Models ; Dynamic Analysis C  Mathematical and Quantitative Methods > C6  Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C65  Miscellaneous Mathematical Tools O  Economic Development, Innovation, Technological Change, and Growth > O4  Economic Growth and Aggregate Productivity > O41  One, Two, and Multisector Growth Models 
Item ID:  74568 
Depositing User:  Denis Stijepic 
Date Deposited:  14 Oct 2016 13:36 
Last Modified:  05 Oct 2019 17:57 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/74568 