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A geometrical approach to structural change modelling

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  • Stijepic, Denis

Abstract

A large body of research has studied structural change, particularly the dynamics of labour allocation in multi-sector growth models, based on different economic theories. We present a meta-model of structural change that combines information from empirical evidence (stylized facts) with information on the geometrical properties of typical trajectories studied in structural change theory. In particular, our approach is based on three facts: (1) structural change in three-sector models is defined on a 2-simplex; (2) the trajectory of past structural change partitions the 2-simplex into economically interpretable sections; (3) the typical properties of structural change trajectories (e.g. non-self-intersection) prohibit some movements from one section to another. Jointly, these facts imply that structural change is path-dependent and that the number of feasible structural change scenarios can be reduced significantly. While we focus on labour allocation dynamics, our approach can be applied to other topics (e.g. income distribution dynamics).

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  • Stijepic, Denis, 2015. "A geometrical approach to structural change modelling," Structural Change and Economic Dynamics, Elsevier, vol. 33(C), pages 71-85.
    • Handle: RePEc:eee:streco:v:33:y:2015:i:c:p:71-85
    DOI: 10.1016/j.strueco.2015.04.001
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    15. Stijepic, Denis, 2014. "A Theorem on the Limit-Properties of Structural Change and some Implications," MPRA Paper 57580, University Library of Munich, Germany.
    16. Schettkat, Ronald & Yocarini, Lara, 2006. "The shift to services employment: A review of the literature," Structural Change and Economic Dynamics, Elsevier, vol. 17(2), pages 127-147, June.
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    1. Stijepic, Denis, 2019. "On development paths minimizing the aggregate labor-reallocation costs in the three-sector framework and an application to structural policy," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203519, Verein für Socialpolitik / German Economic Association.
    2. Denis Stijepic, 2017. "An argument against Cobb-Douglas production functions (in multi-sector growth modeling)," Economics Bulletin, AccessEcon, vol. 37(2), pages 1143-1150.
    3. Stijepic, Denis, 2017. "Empirical evidence on the geometrical properties of structural change trajectories," MPRA Paper 80854, University Library of Munich, Germany, revised 17 Aug 2017.
    4. Stijepic, Denis, 2017. "On the predictability of economic structural change by the Poincaré-Bendixson theory," MPRA Paper 80849, University Library of Munich, Germany, revised 17 Aug 2017.
    5. Irina Zabelina & Ekaterina Klevakina, 2016. "Structural Changes in the Economy of Cross-Border Regions of Russia and China," International Journal of Economics and Financial Issues, Econjournals, vol. 6(4), pages 1460-1467.
    6. Stijepic, Denis, 2014. "A Theorem on the Limit-Properties of Structural Change and some Implications," MPRA Paper 57580, University Library of Munich, Germany.
    7. Denis Stijepic, 2017. "Positivistic models of long-run labor allocation dynamics," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-30, December.
    8. Stijepic, Denis, 2017. "On development paths minimizing the structural change costs in the three-sector framework and an application to structural policy," MPRA Paper 77023, University Library of Munich, Germany, revised 22 Feb 2017.
    9. Stijepic, Denis, 2019. "A topological approach to structural change analysis and an application to long-run labor allocation dynamics," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 453-462.
    10. Stijepic, Denis, 2016. "Empirical evidence on the topological properties of structural paths and some notes on its theoretical explanation," MPRA Paper 82473, University Library of Munich, Germany, revised 26 Oct 2017.
    11. Stijepic, Denis, 2018. "A contribution to the qualitative, interdisciplinary modeling of environmental development," MPRA Paper 88953, University Library of Munich, Germany, revised 12 Sep 2018.
    12. Damir Stijepic, 2019. "The impact of the productivity dispersion across employers on the labor's income share," Economics Bulletin, AccessEcon, vol. 39(1), pages 73-83.
    13. Stijepic, Denis, 2018. "Models of Continuous Dynamics on the 2-Simplex and Applications in Economics," MPRA Paper 86341, University Library of Munich, Germany.
    14. Kurose, Kazuhiro, 2021. "Models of structural change and Kaldor’s facts: Critical survey from the Cambridge Keynesian perspective," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 267-277.

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    More about this item

    Keywords

    Structure; Dynamics; Geometrical; Simplex; Path dependency;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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