Kuznets-Kaldor-Puzzle, Neutral Structural Change and Independent Preferences and Technologies

77 Pages Posted: 12 Mar 2012

See all articles by Denis Stijepic

Denis Stijepic

affiliation not provided to SSRN

Helmut Wagner

University of Hagen (Fernuniversitaet Hagen)

Date Written: March 12, 2012

Abstract

The Kuznets-Kaldor stylized facts are one of the most striking empirical regularities of the development process in industrialized countries: While massive factor reallocation across technologically distinct sectors takes place, the aggregate ratios of the economy are quite stable. This implies that cross-technology factor reallocation has a relatively weak impact on aggregates, which is a puzzle from the theoretical point of view. We provide a model which can explain the Kuznets-Kaldor-puzzle by independent preferences and technologies. Furthermore, we show by empirical evidence that this explanation is in line with 55% of structural change in the USA between 1948 and 1987.

Keywords: Kaldor facts, Kuznets facts, structural change, factor reallocation, sectors, balanced growth, unbalanced growth, neoclassical growth models

JEL Classification: O14, O41, E13

Suggested Citation

Stijepic, Denis and Wagner, Helmut, Kuznets-Kaldor-Puzzle, Neutral Structural Change and Independent Preferences and Technologies (March 12, 2012). Available at SSRN: https://ssrn.com/abstract=2020291 or http://dx.doi.org/10.2139/ssrn.2020291

Denis Stijepic (Contact Author)

affiliation not provided to SSRN

Helmut Wagner

University of Hagen (Fernuniversitaet Hagen) ( email )

Universitätsstrasse 41
Feithstrathe 140
D-58084 Hagen
Germany
011-49-2331-987-2640 (Phone)
011-49-2331-987-391 (Fax)

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