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- Title
On The Neoclassical Version of The Dual Economy.
- Authors
Marino, Anthony M.
- Abstract
A significant drawback of the above models is the assumption of specific production functions (Cobb-Douglas) to describe technological possibilities. The present paper introduces a model of the dual economy which places only the usual neoclassical restrictions on productive relations and considers the implications of this generalization on purely agrarian growth, the emergence of industry, and both the finite and asymptotic properties of the relevant growth paths for two-sector growth. Section 2 presents the basic model, where, for tractability, the Jorgenson demand assumptions are retained. Section 3 studies existence, uniqueness and stability of balanced growth equilibria in an agrarian economy, with and without a positive rate of technical progress. Section 4 gives necessary and sufficient conditions for the possibility of the emergence of a viable industrial sector. Section 5 completely characterizes non-steady-state and steady-state behaviour of the relevant growth paths for two-sector growth. Section 6 contains some conclusions.
- Subjects
DUAL economy; ECONOMICS; ECONOMIC systems; PRODUCTION (Economic theory); INDUSTRIES; AGRICULTURE; ECONOMIC structure; ECONOMETRIC models; ECONOMIC history; NEOCLASSICAL school of economics
- Publication
Review of Economic Studies, 1975, Vol 42, Issue 3, p435
- ISSN
0034-6527
- Publication type
Article
- DOI
10.2307/2296856