Beyond Balanced Growth [electronic resource] / Sergio Rebelo.
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TextSeries: IMF Working Papers; Working Paper ; No. 01/85Publication details: Washington, D.C. : International Monetary Fund, 2001Description: 1 online resource (21 p.)ISBN: 1451850751 :ISSN: 1018-5941Subject(s): Economic Growth | Growth Rate | Growth Rates | Growth | Kaldor Facts | Labor Income | Hong Kong Special Administrative Region of China | United StatesAdditional physical formats: Print Version:: Beyond Balanced GrowthOnline resources: IMF e-Library | IMF Book Store Abstract: Balanced growth models are commonly used in macroeconomics because they are consistent with the well-known Kaldor facts regarding economic growth. These models, however, are inconsistent with one of the most striking regularities of the growth process-the massive reallocation of labor from agriculture into manufacturing and services. This paper presents a simple model consistent with both the Kaldor facts and the dynamics of sectoral labor reallocation. The model shows that balanced growth can be consistent with structural change.
Balanced growth models are commonly used in macroeconomics because they are consistent with the well-known Kaldor facts regarding economic growth. These models, however, are inconsistent with one of the most striking regularities of the growth process-the massive reallocation of labor from agriculture into manufacturing and services. This paper presents a simple model consistent with both the Kaldor facts and the dynamics of sectoral labor reallocation. The model shows that balanced growth can be consistent with structural change.
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