CLSV_The_role_of_technology,_organisation,_and_demand_in_growth_and_income_distribution_LEM.pdf (3.96 MB)
The role of technology, organisation, and demand in growth and income distribution
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posted on 2023-06-08, 22:49 authored by Tommaso CiarliTommaso Ciarli, André Lorentz, Maria SavonaMaria Savona, Marco ValenteThe paper proposes a model that explains cross-country growth divergences over time for di?erent aspects of structural change. The model formalises the links between production technology, ?rm organisation (functional composition of employment) on the supply side and the endogenous evolution of income distribution and consumption patterns on the demand side. Wage distribution is the main channel between the organisation of ?rms and consumption patterns, and ?rm selection is the main trigger of investment in new capital, productivity gains and cumulative growth. The model is able to reproduce empirical stylised facts on growth and income inequality associated with di?erent stages of growth. We use VARs to estimate the causal relations between the three aspects of structural change. We then analyse the e?ect of the parameters that de?ne the structure of an economy – and the way in which this unfolds through time – on growth and income distribution via numerical simulation. Product variety, di?erences in consumption preferences, organisational complexity and production technology determine whether the economy experiences a take-o? or a stagnating growth, and the associated distribution of income.
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- Published
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- Published version
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Laboratory of Economics and ManagementPublisher URL
Pages
45.0Place of publication
PisaDepartment affiliated with
- SPRU - Science Policy Research Unit Publications
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San'Anna School of Advanced StudiesFull text available
- Yes
Legacy Posted Date
2015-10-16First Open Access (FOA) Date
2016-03-22First Compliant Deposit (FCD) Date
2016-03-22Usage metrics
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