Gundlach, Erich - Institut für Weltwirtschaft (IfW) - 1993
An income elastic demand for services is usually regarded as one of the major explanations for the observed pattern of … show that lagging productivity growth in the service sector and a homothetic or income inelastic demand for services do not … structural change in the world economy. Recent empirical findings cast some doubt on this demand-bias hypothesis. This paper …