TY  - JOUR
AU  - Kongsamut,Piyabha
AU  - Rebelo,Sergio
AU  - Xie,Danyang
TI  - Beyond Balanced Growth
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6159
PY  - 1997
Y2  - September 1997
UR  - http://www.nber.org/papers/w6159
L1  - http://www.nber.org/papers/w6159.pdf
N1  - Author contact info:
Sergio Rebelo
Northwestern University
Kellogg School of Management
Department of Finance
Leverone Hall
Evanston, IL  60208-2001
Tel: 847/467-2329
Fax: 847/491-5719
E-Mail: s-rebelo@northwestern.edu

Danyang Xie
Department of Economics
Hong Kong University of
Science & Technology
Clear Water Bay, Kowloon, HONG KONG
Tel: fax 852-2358-2084
E-Mail: dxie@ust.hk
AB  - One of the most striking regularities of the growth process is the massive reallocation of labor from agriculture into industry and services.  Balanced growth models are commonly used in macroeconomics because they are consistent with the well-known Kaldor facts about economic growth.  These models are, however, inconsistent with the structural change dynamics that are a central feature of economic development.  This paper discusses models with generalized balanced growth paths. These paths retain some of the key features of balanced growth but are consistent with the observed labor reallocations dynamics.
ER  -