The Farmer, the Blue-collar, and the Monk: Understanding economic development through saturations of demands and non-homothetic productivity gains

Gray, Elie, Grimaud, André and Le Bris, David (2018) The Farmer, the Blue-collar, and the Monk: Understanding economic development through saturations of demands and non-homothetic productivity gains. TSE Working Paper, n. 18-906, Toulouse

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Official URL: http://tse-fr.eu/pub/32577

Abstract

To explain the process of development historically documented, we consider a model with three economic sectors (agriculture, manufacturing and services) characterized by different productivity gains and by saturation levels in the demands of agricultural and manufactured goods. Our parsimonious model captures within a single framework the process of development which is characterized by the structural changes in the workforce across sectors, variable growth rates (an initial “Malthusian regime” exhibiting slow growth, a fast growth regime after a takeoff, and a gradual slow down leading to a possible new stagnation) and the relative evolutions of prices across sectors. Reasonable calibration generates results quantitatively close to the observed empirical facts.

Item Type: Monograph (Working Paper)
Language: English
Date: March 2018
Place of Publication: Toulouse
Uncontrolled Keywords: Growth model, Structural change, Unified growth, Economic development, Saturation of demands
JEL codes: N1 - Macroeconomics and Monetary Economics; Growth and Fluctuations
O1 - Economic Development
O4 - Economic Growth and Aggregate Productivity
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 24 Apr 2018 11:27
Last Modified: 24 Apr 2018 11:27
OAI ID: oai:tse-fr.eu:32577
URI: http://publications.ut-capitole.fr/id/eprint/25892

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