6.4.2.1 Other Specifications Emphasizing the Effects of Income Changes
Above we chose a specification of preferences where the effects of income changes on expenditure shares were captured by the non-homotheticity terms and . While we think that this is a tractable and transparent way of introducing income effects, there are several alternative specifications of non-homothetic preferences in the literature. Here, we discuss some examples.
In the first quantitative analysis of structural transformation within the framework of the growth model, ...
Get Handbook of Economic Growth now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.