Beyond Balanced Growth

Balanced growth models are commonly used in macroeconomics because they are consistent with the well-known Kaldor facts regarding economic growth. These models, however, are inconsistent with one of the most striking regularities of the growth process—the massive reallocation of labor from agricultu...

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Bibliographic Details
Main Author: Rebelo, Sergio
Other Authors: Kongsamut, Piyabha, Xie, Danyang
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2001
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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651 4 |a United States 
653 |a Labor 
653 |a Manufacturing industries 
653 |a Labour 
653 |a Environment and Growth 
653 |a Income economics 
653 |a Agribusiness 
653 |a Labor Economics: General 
653 |a Macroeconomics 
653 |a Agricultural sector 
653 |a Agricultural economics 
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653 |a Real interest rates 
653 |a Banks and Banking 
653 |a Sustainable growth 
653 |a Economic growth 
653 |a Manufacturing 
653 |a Financial services 
653 |a Interest Rates: Determination, Term Structure, and Effects 
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520 |a Balanced growth models are commonly used in macroeconomics because they are consistent with the well-known Kaldor facts regarding economic growth. These models, however, are inconsistent with one of the most striking regularities of the growth process—the massive reallocation of labor from agriculture into manufacturing and services. This paper presents a simple model consistent with both the Kaldor facts and the dynamics of sectoral labor reallocation. The model shows that balanced growth can be consistent with structural change