We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Costly structural change and optimal growth.
- Authors
Ni, Shawn; Wang, Xinghe
- Abstract
This paper studies the optimal growth of a developing economy that has a choice to expend a fixed amount of resource for a structural change that advances its production technology. It is shown that structural change is under-taken if capital stock is above a critical level. Economies undertaking structural change converge to a larger steady state and economies not undertaking structural change converge to a smaller steady state. The optimal policy correspondences and growth paths are characterized. The social optimum is shown implementable by a competitive equilibrium with lump-sum taxation.
- Subjects
ECONOMIC development; ECONOMETRIC models; PREFERRED stocks; CAPITAL stock; TAXATION; CAPITAL contributions; CAPITAL
- Publication
Economic Theory, 1995, Vol 6, Issue 2, p305
- ISSN
0938-2259
- Publication type
Article
- DOI
10.1007/BF01212493