The ability to account for developing as well as stable states is considered an important general requirement for theories in a variety of disciplines. Sometimes, however, theories developed in the first instance to deal with the more straightforward cases do not easily extend to the more difficult cases. This is apparent not only in Economics, where rapidly changing structures call for the re-...

This paper studies nonlinear cointegration models in which the structural coefficients may evolve smoothly over time. These time-varying coefficient functions are well-suited to many practical applications and can be estimated conveniently by nonparametric kernel methods. It is shown that the usual asymptotic methods of kernel estimation completely break down in this setting when the functional...

We include learning in a standard equilibrium business cycle model with explicit growth. We use the model to study how the economy’s agents could learn in real time about the important trend-changing events of the postwar era in the U.S., such as the productivity slowdown, increased labor force participation by women, and the “new economy” of the 1990s. We find that a large fraction of the obse...

One of the earliest and most central insights of the literature on economic development is that development entails structural change. The countries that manage to pull themselves out of poverty and get richer are those that are able to diversify away from agriculture and other traditional products. As labour and other resources move from agriculture into modern economic activities, overall pro...

We analyse the evolution of the Indian economy over the past six decades, particularly identifying structural breaks. We find that usually there has been a gradual change in the indicators of the economy .The growth rate of per capita GDP after falling in the decade mid 60s to mid 70s has been accelerating gradually since then. Since 1991 exports have played an important role in this growth. Th...

Spatial panel data models are widely used in empirical studies. The existing theories of spatial models so far have largely confine the analysis under the assumption of parameters stabilities. This is unduely restrictive, since a large number of studies have well documented the presence of structural changes in the relationship of economic variables. This paper proposes and studies spatial pane...

In this paper we introduce investment specific technical progress into Pasinetti’s model of structural change. Our aim is to assess the effects of embodied technical progress on economic growth and macroeconomic variables. Our findings suggest that despite the fact that this type of technical progress increases the productivity of capital, it has negative effects on conditions that promote full...

In the past, research on changes in relative importance among broad three sectors— agriculture, industry, and service—showed general patterns of a country’s structural transformation along with economic development. However, there has been devoid of empirical studies investigating in the structural change within the manufacturing sector, which often plays a role of the engine in economic growth...

This paper presents an agent-based model of an organization. The model is made of a social network—composed of the different organization workers—and a knowledge network. Workers are assigned tasks, for which they have to use information in the knowledge network. We have modeled the quality of the information by assigning each information item a probability of being wrong. Agents can interact w...