Data and Code for: The Rise of Services and Balanced Growth in Theory and Data

Principal Investigator(s): View help for Principal Investigator(s) Miguel Leon-Ledesma, University of Kent; Alessio Moro, University of Cagliari

Version: View help for Version V1

Name	File Type	Size	Last Modified
LLMdata-codes			09/17/2019 11:49:AM

Project Citation:

Leon-Ledesma, Miguel, and Moro, Alessio. Data and Code for: The Rise of Services and Balanced Growth in Theory and Data. Nashville, TN: American Economic Association [publisher], 2020. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2020-09-28. https://doi.org/10.3886/E111582V1

Project Description

Summary: We investigate the effect of structural transformation on the process of economic growth. Using a two-sector growth model we show that, in addition to Baumol’s cost disease, structural transformation from goods to services generates other predictions that are in line with cross-country growth facts: an increase in the real investment rate, a decline in the real interest rate and the marginal product of capital and an acceleration of investment-specific technological change as the share of services increases. The model calibrated to U.S. data can account for the elasticity of real investment rates to the share of services measured in cross-country data.

Scope of Project

Subject Terms: macroeconomics; economic growth; economic sectors

JEL Classification:
      E22 Investment • Capital • Intangible Capital • Capacity
      E24 Employment • Unemployment • Wages • Intergenerational Income Distribution • Aggregate Human Capital • Aggregate Labor Productivity
      E31 Price Level • Inflation • Deflation
      O41 One, Two, and Multisector Growth Models
      O41

Data Type(s): aggregate data

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Published Versions

V1 [2020-09-28]

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