{"id":9177,"date":"2022-07-27T06:53:48","date_gmt":"2022-07-27T06:53:48","guid":{"rendered":"https:\/\/depocen.org\/publications\/capital-labor-substitution-structural-change-and-growth\/"},"modified":"2022-07-27T06:53:48","modified_gmt":"2022-07-27T06:53:48","slug":"capital-labor-substitution-structural-change-and-growth","status":"publish","type":"publications","link":"https:\/\/depocen.org\/en\/publications\/capital-labor-substitution-structural-change-and-growth\/","title":{"rendered":"Capital-Labor Substitution, Structural Change and Growth."},"content":{"rendered":"<p>There is a growing interest in multi-sector models that combine aggregate balanced<br \/>\ngrowth, consistent with the well-known Kaldor facts, with systematic changes in<br \/>\nthe relative importance of each sector, consistent with the Kuznets facts. Although<br \/>\nvariations in the income elasticity of demand across goods played an<br \/>\nimportant role in the initial attempts, recent models stress the role of supplyside<br \/>\nfactors in this process of structural change. Along these lines, Ngai and<br \/>\nPissarides (American Economic Review, 2008) focus in differential productivity<br \/>\ngrowth across sectors while Acemoglu and Guerrieri (Journal of Political Economy,<br \/>\n2008) stress differences in factor proportions and capital deepening. We<br \/>\nexplore a general framework that encompasses, as special cases, these two supplyside<br \/>\nmechanisms. Our model uncovers an additional driving force for structural<br \/>\nchange based on differences in the degree of capital-labor substitutability. When<br \/>\nthe flexibility to combine capital and labor varies across intermediate goods and<br \/>\nthe final sector is Cobb-Douglas, as the economy grows the fraction of capital<br \/>\n(labor) allocated to the sector with high elasticity of substitution increases (decreases).<br \/>\nWe provide some casual evidence consistent with this new mechanism.<\/p>\n","protected":false},"featured_media":0,"template":"","cate_publications":[],"author_publications":[1848,1849,1850,1851],"topic_publications":[],"class_list":["post-9177","publications","type-publications","status-publish","hentry","author_publications-francisco-alvarez-cuadrado","author_publications-ngo-van-long","author_publications-francisco-alvarez-cuadrado-en","author_publications-ngo-van-long-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/publications\/9177","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/publications"}],"about":[{"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/types\/publications"}],"wp:attachment":[{"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/media?parent=9177"}],"wp:term":[{"taxonomy":"cate_publications","embeddable":true,"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/cate_publications?post=9177"},{"taxonomy":"author_publications","embeddable":true,"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/author_publications?post=9177"},{"taxonomy":"topic_publications","embeddable":true,"href":"https:\/\/depocen.org\/en\/wp-json\/wp\/v2\/topic_publications?post=9177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}