December 2013
Intermediate to advanced
1176 pages
41h 52m
English
Content preview from Handbook of Economic Growth
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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, ...
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