W.P. Carey School of Business
Department of Economics
Arizona State University
Tempe, AZ 85287-3806
Institutional Affiliation: Arizona State University
Information about this author at RePEc
NBER Working Papers and Publications
|May 2018||Structural Change in Investment and Consumption: A Unified Approach|
with Richard Rogerson, Ákos Valentinyi: w24568
Existing models of structural change typically assume that all of investment is produced in manufacturing. This assumption is strongly counterfactual: in the postwar US, the share of services value added in investment expenditure has been steadily growing and it now exceeds 0.5. We build a new model, which takes a unified approach to structural change in investment and consumption. Our unified approach leads to three new insights: technological change is endogenously investment specific; having constant TFP growth in all sectors is inconsistent with structural change and aggregate balanced growth occurring jointly; the sector with the slowest TFP growth absorbs all resources asymptotically. We also provide empirical support from the postwar US for the first and third insight.
|April 2013||Growth and Structural Transformation|
with Richard Rogerson, Ákos Valentinyi: w18996
Structural transformation refers to the reallocation of economic activity across the broad sectors agriculture, manufacturing and services. This review article synthesizes and evaluates recent advances in the research on structural transformation. We begin by presenting the stylized facts of structural transformation across time and space. We then develop a multi-sector extension of the one-sector growth model that encompasses the main existing theories of structural transformation. We argue that this multi-sector model serves as a natural benchmark to study structural transformation and that it is able to account for many salient features of structural transformation. We also argue that this multi-sector model delivers new and sharper insights for understanding economic development, regio...
Published: Handbook of Economic Growth Volume 2, 2014, Pages 855–941 Handbook of Economic Growth Cover image Chapter 6 – Growth and Structural Transformation Berthold Herrendorf*, Richard Rogerson†, Ákos Valentinyi‡
|October 2009||Two Perspectives on Preferences and Structural Transformation|
with Richard Rogerson, Ákos Valentinyi: w15416
We ask what specification of preferences can account for the changes in the expenditure shares of broad sectors that are associated with the process of structural transformation in the U.S. since 1947. Following the tradition of the expenditure systems literature, we first calibrate utility function parameters using NIPA data on final consumption expenditure. We find that a Stone-Geary specification fits the data well. While useful, this exercise does not tell the researcher what utility function to use in a model that posits sectoral production functions in value added form. We therefore develop a method to calculate the value added components of consumption categories that are consistent with value added production functions, and use these data to calibrate a utility function over sector...
Published: Berthold Herrendorf & Richard Rogerson & ?kos Valentinyi, 2013. "Two Perspectives on Preferences and Structural Transformation," American Economic Review, American Economic Association, vol. 103(7), pages 2752-89, December. citation courtesy of