This study presents a three-sector growth model that consists of manufacturing, private services, and public services, and examines the relationship between sectoral compositions and the tax rate. We identify an optimal tax rate that maximizes instantaneous utility. The optimal tax rate...

This paper introduces long waves into Pasinetti's model of structural change on the assumption that productivity growth is fundamentally driven by technological revolutions (radical process and product innovations). The argument is developed at the logical stage of the "natural" system,...

African countries may have fared poorly compared to some countries in other regions, but relative to their own performance history some African countries have done quite well over the past eight years. In particular 2004 and 2005 were especially good years. How can such performance be made to...

The diagnosis: Dutch disease caused by international remittances afflicts the middle income countries but not the upper income and low income countries. The middle income countries can inoculate their economies from getting the disease with robust macro and sectoral economy conditions. But if...

The diagnosis: Dutch disease caused by international remittances afflicts the middle income countries but not the upper income and low income countries. The middle income countries can inoculate their economies from getting the disease with robust macro and sectoral economy conditions. But if...

In this paper, I develop a three-sector model that is able to fully explain the postwar structural transformation process experienced by the United States from 1950 to 2005. The model have multiple consumption goods which are produced using dierent factor intensities. The closed economy version...

Differences in total factor productivity (TFP) are the dominant source of the large variation of income across countries. This paper seeks to understand which sectors account for the aggregate TFP gap between rich and poor countries. I propose a new approach for estimating sectoral TFP using...

A striking feature of the structural change literature is that, even though the U.S. economy is often used as a benchmark for calibration, the traditional model cannot account for the steep decline in manufacturing and rise in services in the United States since early 1980s (Buera and Kaboski,...

Different goods are produced by different sectors in an economy. The fact that sectors use different production technologies is named technology-bias. The technology-bias is well documented and has important theoretical implications for economic growth and unemployment. We provide a theoretical...

We conduct a comprehensive study of macroeconomic modeling methods, new theories of economic growth and the impact of technology and institutions on economic growth, in order to formulate the basic characteristics that are critical for efficient technological and institutional effects modeling....