Structural change and the kaldor facts in a growth model with relative price effects and non-gorman preferences

• Autores: Timo Boppart
• Localización: Econométrica: Journal of the Econometric Society, ISSN 0012-9682, Vol. 82, Nº 6, 2014, págs. 2167-2196
• Idioma: inglés
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• Resumen

  • U.S. data reveal three facts: (1) the share of goods in total expenditure declines at a constant rate over time, (2) the price of goods relative to services declines at a constant rate over time, and (3) poor households spend a larger fraction of their budget on goods than do rich households. I provide a macroeconomic model with non-Gorman preferences that rationalizes these facts, along with the aggregate Kaldor facts. The model is parsimonious and admits an analytical solution. Its functional form allows a decomposition of U.S. structural change into an income and substitution effect. Estimates from micro data show each of these effects to be of roughly equal importance.