The Farmer, the Blue-Collar, and the Monk: Understanding Economic Development Through Saturations of Demands and Non-Homothetic Productivity Gains
Elie Gray|André Grimaud|David Le Bris
To explain the process of development historically documented, we consider a model with three economic sectors (agriculture, manufacturing and services) characterized by different productivity gains saturation levels in demands agricultural manufactured goods. Our parsimonious captures within single framework which is structural changes workforce across sectors, variable growth rates (an initial “Malthusian regime” exhibiting slow growth, fast regime after takeoff, gradual down leading to possible new stagnation) relative evolutions prices sectors. Reasonable calibration generates results quantitatively close observed empirical facts.
Social Science Research Network|RePEc: Research Papers in Economics|Toulouse 1 Capitole Publications (Université Toulouse I Capitole)|Econstor (Econstor)|RePEc: Research Papers in Economics