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Unified Growth Based on the Specific Factors Model

Caspari, Volker and Pertz, Klaus (2008):
Unified Growth Based on the Specific Factors Model.
Darmstadt, In: Darmstadt Discussion Papers in Economics, [Online-Edition: http://econstor.eu/bitstream/10419/32055/1/588004847.PDF],
[Report]

Abstract

The two-sector specific factor model is typically used in the theory of international trade where it helps to clarify the principle of comparative advantage. Instead, we use this model as explicit theoretical framework to explain major trends of long-run economic development. Combined with endogenous technical progress functions which assume that knowledge accumulates as a by-product of agricultural and manufacturing experience, the two-sector specific factors model can explain major historical trends and structural turnarounds. The technical progress functions establish the link between the agricultural and the manufacturing sector through the land-labour ratio, which is determined by the savings propensities of wage-earners, landlords and capitalists. This result is achieved by making use of the traditional investment = savings condition, without reference to complicated micro-based models of human capital accumulation.

Item Type: Report
Erschienen: 2008
Creators: Caspari, Volker and Pertz, Klaus
Title: Unified Growth Based on the Specific Factors Model
Language: English
Abstract:

The two-sector specific factor model is typically used in the theory of international trade where it helps to clarify the principle of comparative advantage. Instead, we use this model as explicit theoretical framework to explain major trends of long-run economic development. Combined with endogenous technical progress functions which assume that knowledge accumulates as a by-product of agricultural and manufacturing experience, the two-sector specific factors model can explain major historical trends and structural turnarounds. The technical progress functions establish the link between the agricultural and the manufacturing sector through the land-labour ratio, which is determined by the savings propensities of wage-earners, landlords and capitalists. This result is achieved by making use of the traditional investment = savings condition, without reference to complicated micro-based models of human capital accumulation.

Series Name: Darmstadt Discussion Papers in Economics
Volume: 193
Place of Publication: Darmstadt
Uncontrolled Keywords: Economic development, growth, Industrial Revolution, income distribution
Divisions: 01 Department of Law and Economics
01 Department of Law and Economics > Volkswirtschaftliche Fachgebiete
01 Department of Law and Economics > Volkswirtschaftliche Fachgebiete > Economic Theory
Date Deposited: 26 Aug 2009 08:19
Official URL: http://econstor.eu/bitstream/10419/32055/1/588004847.PDF
Additional Information:

JEL - Classification : E13, N1, O4

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