CONFORMISM AND STRUCTURAL CHANGE. (August 2015)

• Record Type: Journal Article
• Authors: Hori, Takeo; Ikefuji, Masako; Mino, Kazuo
• Is Part Of: International economic review. Volume 56:Number 3(2015:Aug.)
• Page Start: 939
• Page End: 961
• Publication Date: 2015-08
• Subjects: Economics -- Periodicals; 330.05
• DOI: 10.1111/iere.12127
• Languages: English
• ISSNs: 0020-6598

Abstract

<abstract abstract-type="main"> <title> <x xml:space="preserve">Abstract</x> </title> <p>Using a simple, multisector model of endogenous growth, we show that commodity‐specific consumption externalities can be a source of structural change. When the degrees of consumption externalities are different between goods, each sector grows at a different rate. However, the aggregate economy exhibits balanced growth in that capital stock and expenditure grow at the same constant rate. A three‐sector version of our model may reconcile Kaldor's stylized facts with empirically plausible profiles of industrial structure transformation.</p> </abstract>