7 We present a model of structural change due to non-linear Engel-curves for consumer 8 goods. Goods are sequentially introduced starting out as a luxury with high income 9 elasticity and ending up as a necessity with low income elasticity. Although this leads to 10 rising and falling sectoral employment shares, the model exhibits a steady growth path 11 along which the Kaldor facts are satisfi...

Controlling for socioeconomic and geographic factors, under-5 mortality (5q0) in developing countries has been declining at about 2.7% per year, a high rate of 'technical progress'. This paper adduces theoretical and empirical reasons for rejecting the usual specification of homogeneous technical progress across countries and uses a panel of 95 developing countries for the period 1970-2000 to e...

An upstream monopoly that provides a new good to a downstream oligopoly might prefer to sell to a single rather than to multiple downstream firms. For example, Apple initially sold its iPhone through one vendor. If a monopoly uses a single vendor, the government may impose a mandatory universal distribution (MUD) requirement that forces the monopoly to sell to all downstream vendors. However, i...

The Heckscher-Ohlin-Vanek (HOV) theorem predicts whether a country will be a net exporter of services of a certain factor and the volume of the factor content of trade given the country's and the world's factor endowment information. Recent empirical work has documented that the measured factor content of trade is too small compared to the theoretical prediction and named this special pattern o...

In this paper a new method to estimate the equivalence scale elasticity using individual panel data on income satisfaction will be developed. In contrast to other subjective approaches, the present one benefits from the fact that no direct cardinal individual welfare function has to be specified. In addition, panel data enables different scale use by the respondents to be controlled. The approa...

Policymakers in countries around the world are faced with rising health care costs and are debating ways to reform health care to reduce expenditures. Estimates of price elasticity of expenditure are a key component for predicting expenditures under alternative policies. Using unique individual-level data compiled from administrative records from the Chilean private health insurance market, I e...

Equivalence scales are typically designed for adjusting households’ incomes for differences in size and composition. On the one hand, there is evidence that the way differences in needs across households are taken into account has a significant impact on the assessment of inequality in the society. On the other hand, equivalence scales with constant elasticity with respect to family size have b...

Both economic theory and modern economic history show that productivity growth in non-agricultural sectors has consistently outweighed that of the agricultural sector. Thus, as development progresses, employment, which had been centered around the agricultural sector, becomes more and more dependent on the industrial and services sectors. This relationship between economic growth, and the move ...

Since 1970, the share of income spent on housing grew along with incomes and the relative price of housing. This rising share is consistent with housing being a necessity when demand is sufficiently price inelastic. We estimate housing demand parameters using compensated and uncompensated frameworks over space and time, testing restrictions imposed by demand theory and household mobility. Estim...