Library Header Image
LSE Research Online LSE Library Services

Structural change in a multi-sector model of growth

Ngai, L. Rachel and Pissarides, Christopher (2004) Structural change in a multi-sector model of growth. CEP discussion paper; CEPDP0627 (627). Centre for Economic Policy Research, London, UK.

Download (538kB) | Preview


We study a multi-sector model of growth with differences in TFP growth rates across sectors and derive sufficient conditions for the coexistence of structural change, characterized by sectoral labour reallocation, and constant aggregate growth path. The conditions are weak restrictions on the utility and production functions commonly applied by macroeconomists. We present evidence from US two-digit industries that is consistent with our predictions about structural change and successfully calibrate the historical shift from agriculture to manufacturing and services. We show quantitatively that reasonable deviations from our conditions do not have a big impact on the properties of the model.

Item Type: Monograph (Discussion Paper)
Official URL:
Additional Information: © 2004 Liwa Rachel Ngai and Christopher Pissarides 'This paper previously circulated under the title " Balanced Growth with Structural Change" and presented at the CEPR ESSIM 2004 meetings, the SED 2004 annual confrence, the NBER 2004 Summer Institute, the 2004 Canadian Macroeconomic Study Group and elsewhere. The present version has benefited from comments received at these meetings and from the comments [...]. Funding from the CEP, a designated ESRC Research Centre, is gratefully acknowledged.' (p.2)
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HB Economic Theory
JEL classification: O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O14 - Industrialization; Manufacturing and Service Industries; Choice of Technology
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models
Date Deposited: 27 Feb 2008
Last Modified: 28 Dec 2020 00:27

Actions (login required)

View Item View Item


Downloads per month over past year

View more statistics