A Theory of Structural Change That Can Fit the Data
Journal
American Economic Journal: Macroeconomics
Type
journal article
Date Issued
2022-04
Author(s)
Abstract (De)
We study structural change in the historical consumption expenditure of the United States, the United Kingdom, Canada, and Australia over more than a century. We characterize the most general class of preferences in a time-additive setting that admits aggregation of the saving decision and allows us to identify preference parameters from aggregate data. We parameterize and estimate such intertemporally aggregable (IA) preferences and discuss their properties in a dynamic general equilibrium framework with sustained growth. Our preference class is considerably more flexible than the Gorman form or PIGL, giving rise to a good fit of the non-monotonic pattern of structural change.
Language
English
Refereed
Yes
Volume
14
Number
2
Start page
160
End page
206
Subject(s)
Division(s)
Eprints ID
266138
File(s)![Thumbnail Image]()
open.access
Name
abm1.pdf
Size
1.12 MB
Format
Adobe PDF
Checksum (MD5)
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