![Evolution of the relative price of goods and services in a neoclassical model of capital accumulation [An article from: Review of Economic Dynamics]](https://www.ebooknetworking.net/books/B00/0RR/bigB000RR4EKI.jpg)
Evolution of the relative price of goods and services in a neoclassical model of capital accumulation [An article from: Review of Economic Dynamics]
Book Details
Author(s)V. Klyuev
PublisherElsevier
ISBN / ASINB000RR4EKI
ISBN-13978B000RR4EK0
MarketplaceFrance 🇫🇷
Description
This digital document is a journal article from Review of Economic Dynamics, published by Elsevier in 2005. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.
Description:
The paper provides an explanation for the secular increase in the price of services relative to that of manufactured goods that relies on capital accumulation rather than on an exogenous total factor productivity growth differential. The key assumptions of the two-sector, intertemporal optimizing model are relatively high capital intensity in the production of goods and limited cross-border capital mobility, allowing the interest rate to vary. With plausible parameterization, the model also predicts a decline in the employment share of the goods sector over time.
Description:
The paper provides an explanation for the secular increase in the price of services relative to that of manufactured goods that relies on capital accumulation rather than on an exogenous total factor productivity growth differential. The key assumptions of the two-sector, intertemporal optimizing model are relatively high capital intensity in the production of goods and limited cross-border capital mobility, allowing the interest rate to vary. With plausible parameterization, the model also predicts a decline in the employment share of the goods sector over time.
