A Theory of Structural Change That Can Fit the Data

Item Type Journal paper
Abstract We study structural change in the historical consumption expenditure of the United States, the United Kingdom, Canada, and Australia over more than a century. We characterize the most general class of preferences in a time-additive setting that admits aggregation of the saving decision and allows us to identify preference parameters from aggregate data. We parameterize and estimate such intertemporally aggregable (IA) preferences and discuss their properties in a dynamic general equilibrium framework with sustained growth. Our preference class is considerably more flexible than the Gorman form or PIGL, giving rise to a good fit of the non-monotonic pattern of structural change.
Authors Alder, Simon; Boppart, Timo & Müller, Andreas
Journal or Publication Title American Economic Journal: Macroeconomics
Language English
Subjects economics
Refereed Yes
Date April 2022
Volume 14
Number 2
Page Range 160-206
Depositing User Prof. PhD Timo Boppart
Date Deposited 16 Apr 2022 12:35
Last Modified 21 Mar 2023 01:27
URI: https://www.alexandria.unisg.ch/publications/266138

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Citation

Alder, Simon; Boppart, Timo & Müller, Andreas (2022) A Theory of Structural Change That Can Fit the Data. American Economic Journal: Macroeconomics, 14 (2). 160-206.

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https://www.alexandria.unisg.ch/id/eprint/266138
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