Sectoral composition and macroeconomic dynamics


Autoria(s): Alonso Carrera, Jaime; Caballé, Jordi; Raurich, Xavier
Contribuinte(s)

Universitat Autònoma de Barcelona. Unitat de Fonaments de l'Anàlisi Econòmica

Institut d'Anàlisi Econòmica

Data(s)

09/06/2011

Resumo

We analyze the transitional dynamics of a model with heterogeneous consumption goods. In this model, convergence is driven by two different forces: the typical diminishing returns to capital and the sectoral change inducing the variation in relative prices. We show that this second force affects the growth rate if the two consumption goods are not Edgeworth independent and if these two goods are produced with technologies exhibiting different capital intensities. Because the afore mentioned dynamic sectoral change arises only under heterogeneous consumption goods, the transitional dynamics of this model exhibits striking differences with the growth model with a single consumption good. We also show that these differences in the transitional dynamics can give raise to large discrepancies in the welfare cost of shocks between the economy with a unique consumption good and the economy with multiple consumption goods.

Formato

36

346824 bytes

application/pdf

Identificador

http://hdl.handle.net/2072/152044

Idioma(s)

eng

Relação

Working papers; 869.11

Direitos

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Palavras-Chave #Consum (Economia) #Desenvolupament econòmic #Macroeconomia
Tipo

info:eu-repo/semantics/workingPaper