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Conformism And Structural Change

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  • Takeo Hori
  • Masako Ikefuji
  • Kazuo Mino

Abstract

Using a simple, multisector model of endogenous growth, we show that commodity‐specific consumption externalities can be a source of structural change. When the degrees of consumption externalities are different between goods, each sector grows at a different rate. However, the aggregate economy exhibits balanced growth in that capital stock and expenditure grow at the same constant rate. A three‐sector version of our model may reconcile Kaldor's stylized facts with empirically plausible profiles of industrial structure transformation.

Suggested Citation

  • Takeo Hori & Masako Ikefuji & Kazuo Mino, 2015. "Conformism And Structural Change," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 56(3), pages 939-961, August.
    • Handle: RePEc:wly:iecrev:v:56:y:2015:i:3:p:939-961
    DOI: 10.1111/iere.12127
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    Cited by:

    1. Yunfang Hu & Kazuo Mino, 2014. "Capital Accumulation and Structural Change in a Small Open Economy," Pacific Economic Review, Wiley Blackwell, vol. 19(5), pages 634-656, December.
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    3. Alireza Shakibaei & MohammadReza Ahmadinejad, 2016. "Investigating the Structural Changes of Tax in Iran," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 20(4), pages 445-460, Autumn.

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    More about this item

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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