The Rise of the Service Economy

Buera, Francisco J.; Kaboski, Joseph P.

doi:10.3386/w14822

Cited by 132 publications

(158 citation statements)

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“…Further, the lower the per capita GDP, the greater the scope of labor productivity growth in the service sector, which implies that there is still a lot of room for growth in the productivity of services. Thus, Buera and Kaboski (2009) argue that as productivity grows, individuals consume new services. Eventually, labor productivity increases enough which makes the absolute cost advantage of market-production smaller and leads individuals to home produced customized versions of services which yield higher utility.…”

Section: Growth and Development Of The Service Sectormentioning

confidence: 99%

Relationship Between Inflation and Real Economic Growth in Rwanda

Nkikabahizi

Ndagijimana

Musabanganji

2017

Frontiers in African Business Research

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Section: Growth and Development Of The Service Sectormentioning

confidence: 99%

Relationship Between Inflation and Real Economic Growth in Rwanda

Nkikabahizi

Ndagijimana

Musabanganji

2017

Frontiers in African Business Research

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“…, and w = PiAi{gi{ki)-g[{ki)ki) (10) = P2A2 (52 (^2) -92 {h)^2) • Differentiating the interest rate condition, (9), with respect to time and using (8) Since AijAi = A2/A2, Differentiating the wage condition, (10), with respect to time, using (8) and some algebra …”

Section: P2mentioning

confidence: 99%

Capital Deepening and Nonbalanced Economic Growth

Acemoğlu

Guerrieri

2008

Journal of Political Economy

560

321

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“…In output, the same structural change can be observed. See Buera and Kaboski (2009b) who emphasize, that the rise of the service economy in terms of value added shares has in the U.S. mainly been driven by consumption.…”

Section: Introductionmentioning

confidence: 99%

Structural Change and the Kaldor Facts in a Growth Model With Relative Price Effects and Non-Gorman Preferences

2014

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Growth of per-capita income is associated with (i) significant shifts in the sectoral economic structure, (ii) systematic changes in relative prices and (iii) the Kaldor facts. Moreover, (iv) cross-sectional data shows systematic expenditure structure difference between rich and poor households. Ngai and Pissarides (2006) and Acemoglu and Guerrieri (2008) are consistent with observation (i)-(iii) but abstract form non-homotheticities of preferences. However, they cannot replicate the structural change between the U.S. goods and service sector quantitatively. This paper presents a growth model, which reconciles both forces of structural change -relative price and income effectswith balanced growth on the aggregate. The theory is simple and parsimonious and contains an analytical solution. The model can replicate shape and magnitude of the nonbalanced sectoral facts as well as the balanced nature of growth on the aggregate. In a structural estimation, the model's functional form is exploited to obtain estimates for the relative importance of income and price effects as determinants of the structural change.Keywords: Structural change, relative price effect, non-Gorman preferences, Kaldor facts. JEL classification: O14, O30, O41, D90. * I would like to thank Josef Falkinger, Reto Föllmi, Volker Grossmann, Marcus Hagedorn, Danyang Xie, Fabrizio Zilibotti and Josef Zweimüller for illuminating discussions. Moreover, I would like to thank Gregori Baetschmann, Victoria Galsband, Sandra Hanslin, Andreas Müller, Nick Netzer, Iryna Stewen, Raphael Studer and Franziska Weiss for many valuable comments and suggestions.

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The Rise of the Service Economy

Abstract: Bob Hall, Bob Lucas, and Ivan Werning as well as seminar participants at various places. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.

Cited by 132 publications

References 1 publication

Relationship Between Inflation and Real Economic Growth in Rwanda

Relationship Between Inflation and Real Economic Growth in Rwanda

Capital Deepening and Nonbalanced Economic Growth

Structural Change and the Kaldor Facts in a Growth Model With Relative Price Effects and Non-Gorman Preferences

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