| Juergen Meckl, University of Konstanz |
| Structural Change and Generalized Balanced Growth |
| Session: C-12-11 Wednesday 16 August 2000 by Meckl, Juergen |
| This paper addresses the criticism that balanced growth models are inconsistent with the dynamics of structural change typical for the process of economic growth. Using a sectoral disaggregated version of a research--driven growth model, we develop the concept of a generalized balanced growth path (GBGP). The GBGP preserves decisive properties of the balanced growth path analyzed in aggregated growth models. Along a GBGP, aggregate variables grow at constant rates (balanced growth) while disaggregated variables grow at non--constant rates. The aggregated model's implications for the behavior of aggregates are robust with respect to structural dynamics. |
| Submitted paper full-text in .pdf |