A Theorem on the Limit-Properties of Structural Change and some Implications

Stijepic, Denis (2014): A Theorem on the Limit-Properties of Structural Change and some Implications.

Abstract

Recent growth literature studies structural change in relatively specific three-sector growth models with a focus on the agriculture-manufacturing-services structure. In this paper we take another approach for studying this structural change. By using only few axioms on the properties of structural change trajectories and some mathematical theorems on the limit-properties of trajectories in the plane, we show that structural change in a three-sector framework is a relatively simple process: it is either transitory or cyclical unless there are some “exogenous” driving forces. We elaborate the implications of this result for the structural change modelling literature and topics for further research.

• Item Type: MPRA Paper
• Language: English
• Keywords: structure; dynamics; differential equation systems; limit; Poincaré-Bendixon-theory
• Subjects: C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models

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Stijepic, D. (2014a). A Geometrical Approach to Structural Change Modeling. Available at: http://ideas.repec.org/p/pra/mprapa/55010.html

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