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A topological approach to structural change analysis and an application to long-run labor allocation dynamics

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  • Stijepic, Denis
Abstract
A great part of economic literature deals with structural changes, i.e. long-run changes in the structure of economic aggregates. While the standard literature relies on the mathematical branches of analysis and algebra for modeling structural change and describing the relevant empirical evidence, we choose a topological approach, which relies on the notions of self-intersection and mutual intersection of trajectories. We discuss all the methodological and mathematical aspects of this approach and show that it is applicable to a wide range of classical topics and papers of growth and development theory. Then, we apply it for studying a specific type of structural change, namely, the long-run labor re-allocation across sectors: we (a) elaborate new empirical evidence stating that mutual intersection and non-self-intersection are stylized facts of long-run labor re-allocation, (b) suggest and discuss theoretical explanations of non-self-intersection, and (c) discuss mathematical methods for explaining mutual intersection by using standard structural change models. Overall, our approach generates new evidence, new critique points of the previous structural change literature, new theoretical arguments, and a wide range of new research topics.

Suggested Citation

  • Stijepic, Denis, 2016. "A topological approach to structural change analysis and an application to long-run labor allocation dynamics," MPRA Paper 74568, University Library of Munich, Germany, revised 14 Oct 2016.
    • Handle: RePEc:pra:mprapa:74568
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    as
    1. Stijepic, Denis, 2018. "Models of Continuous Dynamics on the 2-Simplex and Applications in Economics," MPRA Paper 86341, University Library of Munich, Germany.
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    16. Stijepic, Denis, 2017. "On development paths minimizing the structural change costs in the three-sector framework and an application to structural policy," MPRA Paper 77023, University Library of Munich, Germany, revised 22 Feb 2017.
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    18. Stijepic, Denis, 2015. "A geometrical approach to structural change modelling," Structural Change and Economic Dynamics, Elsevier, vol. 33(C), pages 71-85.
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    22. Stijepic, Denis, 2017. "Empirical evidence on the geometrical properties of structural change trajectories," MPRA Paper 80854, University Library of Munich, Germany, revised 17 Aug 2017.
    23. Stijepic, Denis, 2017. "On the predictability of economic structural change by the Poincaré-Bendixson theory," MPRA Paper 80849, University Library of Munich, Germany, revised 17 Aug 2017.
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    1. Stijepic, Denis, 2019. "On development paths minimizing the aggregate labor-reallocation costs in the three-sector framework and an application to structural policy," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203519, Verein für Socialpolitik / German Economic Association.
    2. Stijepic, Denis, 2017. "Empirical evidence on the geometrical properties of structural change trajectories," MPRA Paper 80854, University Library of Munich, Germany, revised 17 Aug 2017.
    3. Stijepic, Denis, 2017. "On the predictability of economic structural change by the Poincaré-Bendixson theory," MPRA Paper 80849, University Library of Munich, Germany, revised 17 Aug 2017.
    4. Denis Stijepic, 2017. "Positivistic models of long-run labor allocation dynamics," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-30, December.
    5. Stijepic, Denis, 2017. "On development paths minimizing the structural change costs in the three-sector framework and an application to structural policy," MPRA Paper 77023, University Library of Munich, Germany, revised 22 Feb 2017.
    6. Kurose, Kazuhiro, 2021. "Models of structural change and Kaldor’s facts: Critical survey from the Cambridge Keynesian perspective," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 267-277.

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    More about this item

    Keywords

    structural change; dynamics; long run; trajectory; intersection; self-intersection; differential equations; geometry; topology; labor; allocation; savings; functional income distribution;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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