Positivistic models of long-run labor allocation dynamics

Stijepic, Denis (2016): Positivistic models of long-run labor allocation dynamics.

Abstract

We formulate economic laws of long-run labor re-allocation across agriculture, manufacturing, and services based on empirical evidence and derive the implications of these laws for the future (transitional and limit) labor allocation dynamics in developed and developing countries. Our approach for deriving these predictions is positivistic in the sense that we try to derive the direct implications of the laws, i.e. we try to minimize the dependence of our predictions on theoretical/ideological arguments. Due to this fact and because the economic laws are qualitative statements, our modeling approach requires the use of geometrical/axiomatic dynamic modeling techniques, set theory and logic.

• Item Type: MPRA Paper
• Language: English
• Keywords: labor re-allocation; structural change; sectors; agriculture; manufacturing; services; long run; dynamics; trajectory; geometry; simplex
• 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 > O1 - Economic Development > O14 - Industrialization ; Manufacturing and Service Industries ; Choice of Technology; 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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