scholarly journals Factor Reallocation and Growth: What if There Are Labor Saving Innovations?

2019 ◽  
Author(s):  
Hernando Zuleta ◽  
Daniel Gamboa
Keyword(s):  
Factor Reallocation

FLEXIBILITY, SECTORAL HYSTERESIS, AND DOWNTURNS

2007 ◽  
Vol 11 (1) ◽  
pp. 128-148 ◽  
Author(s):  
THOMAS M. STEGER
Keyword(s):  
Economic Development ◽  
Growth Model ◽  
Path Dependency ◽  
Technology Shocks ◽  
Technological Improvements ◽  
Factor Reallocation ◽  
Negative Growth

This paper sets up a two-sector growth model with sectoral hysteresis because of intersectoral factor reallocation costs. The main results are: (i) The economy under study exhibits nonergodic growth implying path-dependency (history matters) and permanent consequences of temporary shocks. (ii) Flexible economies are more likely to take advantage of technological improvements. The analysis points to a new mechanism in the flexibility-growth nexus, which complements the findings of Bertola (1994). (iii) Periods of negative growth can be explained as optimal responses of an economy to favorable technology shocks. This result sheds light on the fact that economic development is associated with recurring downturns.

Urban Transport Expansions and Changes in the Spatial Structure of U.S. Cities: Implications for Productivity and Welfare

2020 ◽  
Vol 102 (5) ◽  
pp. 929-945 ◽  
Author(s):  
Nathaniel Baum-Snow
Keyword(s):  
Metropolitan Areas ◽  
Spatial Scales ◽  
Central City ◽  
Large Fraction ◽  
Agglomeration Economies ◽  
Urban Transport ◽  
Housing Cost ◽  
Housing Production ◽  
Factor Reallocation ◽  
Period Model

Each new radial highway serving large U.S. metropolitan areas decentralized 14% to 16% of central city working residents and 4% to 6% of jobs in the 1960–2000 period. Model calibrations yield implied elasticities of central city total factor productivity to central city employment relative to suburban employment of 0.04 to 0.09, meaning a large fraction of agglomeration economies operates at submetropolitan-area spatial scales. Each additional highway causes central city income net of commuting costs to increase by up to 2.4% and housing cost to decline by up to 1.3%. Factor reallocation toward land in housing production generates the plurality of the population decentralization caused by new highways.

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