Structural Change, Growth, and Volatility†

Moro, Alessio,(2015), Structural Change, Growth, and Volatility†. , American Economic Journal: Macroeconomics, UNSPECIFIED

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construct a two-sector general equilibrium model of structural change to study the impact of sectoral composition of gross domestic product (GDP) on cross- country differences in GDP growth and volatility. For an empirically relevant parametrization of sectoral production functions, an increase in the share of services in GDP reduces both aggregate total factor productivity (TFP) growth and volatility, thus reducing GDP growth and volatility. When the model is calibrated to the US manufacturing and service sector, the rise of the service sector occurring as income grows can account for a large fraction of the differences in per capita GDP growth and volatility between high-income economies and upper middle income economies.
Keywords : (JEL E23, E25, E32, L60, L80), UNSPECIFIED
Journal or Publication Title: American Economic Journal: Macroeconomics
Volume: 7
Number: 3
Item Type: Article
Subjects: Ekonomi Pembangunan
Depositing User: Elok Inajati
Date Deposited: 20 Dec 2019 07:07
Last Modified: 20 Dec 2019 07:07

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