Abstract
Agriculture's share of economic activity is known to vary inversely with a country's level of development. This paper examines whether extensions of the neoclassical growth model can account for some important sectoral patterns observed in a current cross section of countries and in the time series data for currently rich countries. We find that a straightforward agricultural extension of the neoclassical growth model fails to account for important aspects of the cross-country data. We then introduce a version of the growth model with home production, and we show that this model performs much better.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 827-850 |
| Number of pages | 24 |
| Journal | Review of Economic Dynamics |
| Volume | 7 |
| Issue number | 4 |
| DOIs | |
| State | Published - Oct 2004 |
| Externally published | Yes |
All Science Journal Classification (ASJC) codes
- Economics and Econometrics
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