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A topological approach to structural change analysis and an application to long-run labor allocation dynamics

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  • Stijepic, Denis

Abstract

A great part of economic literature deals with structural changes, i.e., long-run changes in the structure of economic aggregates. In contrast to the standard literature, which relies on the mathematical branches of analysis and algebra, we suggest a topological approach for the (empirical and theoretical) analysis of structural change, which relies on the notions of self-intersection and intersection of trajectories. We discuss the methodological, mathematical, and intuitive-theoretical aspects of this approach, show that it is applicable to a wide range of classical topics and papers of growth and development theory, and discuss its (potential) applications in structural change theory, empirics, and prediction. Finally, we demonstrate the applicability of the topological approach in the analysis of a specific type of structural change, namely the long-run labor reallocation across sectors. In particular, we elaborate new empirical evidence in this context and provide theoretical explanations for it.

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  • 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.
    • Handle: RePEc:eee:streco:v:51:y:2019:i:c:p:453-462
    DOI: 10.1016/j.strueco.2019.03.001
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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. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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

    Structural change; Dynamics; Long run; Growth; Development; Trajectory; Intersection; Self-intersection; Differential equations; Topology; Labor; Allocation; Savings; Functional income distribution;
    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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