FARM WORK, HOME WORK AND INTERNATIONAL PRODUCTIVITY DIFFERENCES

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 restricted to match U.S. observations 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.


Issue Date:
2000
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/21797
Total Pages:
37
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2017-08-24

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