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Abstract

Recent industry-based empirical studies among countries demonstrate that individual industry-s per capita capital stock and output grow at industry-s own steady state growth rate. The industry growth rate is highly correlated to industry-s technical progress measured by total factor productivity TFP of the industry. Let us refer to this phenomenon as -unbalanced growth among industries.- Very few research concerned with this phenomenon has been done yet. Some exceptions are Echevarria 1997, Kongsamut, Rebelo and Xie 2001, and Acemoglu and Guerrieri 2008 among others. However their models and analytical methods are different from mine. Applying the theoretical method developed by McKenzie and Scheinkman in turnpike theory, I now construct a multi-sector optimal growth model with a industry specific Hicks-neutral technical progress and show that each sector-s per capita capital stock and output grow at the rate of the sector-s technical progress.



Item Type: MPRA Paper -

Original Title: An Unbalanced Multi-industry Growth Model with Constant Returns: A Turnpike Approach-

English Title: An Unbalanced Multi-industry Growth Model with Constant Returns: A Turnpike Approach-

Language: English-

Keywords: multisector growth model;optimal growth; turnpike theory-

Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth ModelsO - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O21 - Planning Models ; Planning PolicyO - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O12 - Microeconomic Analyses of Economic Development-





Author: Takahashi, Harutaka

Source: https://mpra.ub.uni-muenchen.de/24833/







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