 |
 |
 |
 |
 |
 |
 |
research institution devoted to the study of international economic policy. More › ›
subscribe
Keep up to date with Peterson Institute publications, events, and interviews via email, podcast, or RSS. More information on subscription options.
- Peterson Institute Update Newsletter (email)
- Peterson Institute Update Newsletter (RSS)
- Peterson Institute Update
- RealTime Economic Issues Watch
- Event Podcast
- Peterson Perspectives: Interviews on Current Issues
Follow us
 |
 |
 |
Use filters to narrow your search through our publications and events.
translate
- cite this
- email page
- send comments
Web Site Citations
MLA Style:
Xie, Daniel. D. Working Paper 11-4: A Generalized Fact and Model of Long-Run Economic Growth: Kaldor Fact as a Special Case. Peterson Institute for International Economics, 1 Feb. 2011. Web. 1 Feb. 2011. <http://www.iie.com/publications/interstitial.cfm?ResearchID=1755>.
APA Style:
Xie, D. D. (2011). Working Paper 11-4: A Generalized Fact and Model of Long-Run Economic Growth: Kaldor Fact as a Special Case. Retrieved Feb. 1, 2011, from Peterson Institute for International Economics, Washington, DC. Web site: http://www.iie.com/publications/interstitial.cfm?ResearchID=1755.
CBE/CSE Style:
Xie D D. 2011 [cited 2011 Feb 1].Working Paper 11-4: A Generalized Fact and Model of Long-Run Economic Growth: Kaldor Fact as a Special Case. [Internet]. Washington, DC: Peterson Institute for International Economics. Available from: http://www.iie.com/publications/interstitial.cfm?ResearchID=1755.
Chicago Style:
Bibliography (Notes and Bibliography System):
Xie, Daniel D. "Working Paper 11-4: A Generalized Fact and Model of Long-Run Economic Growth: Kaldor Fact as a Special Case." Peterson Institute for International Economics. http://www.iie.com/publications/interstitial.cfm?ResearchID=1755 (accessed February 1, 2011).
References List (Author-Date System):
Xie, Daniel D. Working Paper 11-4: A Generalized Fact and Model of Long-Run Economic Growth: Kaldor Fact as a Special Case. Peterson Institute for International Economics. http://www.iie.com/publications/interstitial.cfm?ResearchID=1755 (accessed February 1, 2011).
Working Paper 11-4
A Generalized Fact and Model of Long-Run Economic Growth: Kaldor Fact as a Special Case
by Daniel Danxia Xie, Peterson Institute for International Economics
February 2011
This paper provides new evidence on the long-run relationship between economic growth and labor's share in national income, based on a comprehensive panel data set for 123 countries from 1950 to 2004. Xie's primary finding is that labor's share follows a cubic relationship with real GDP per capita over the long process of development. At the beginning of the modern economic growth process, the share of labor in national income first decreases until an initial threshold is reached. After that, labor's share keeps increasing until the country's GDP per capita reaches a second threshold before falling again. Xie argues that these dynamics apply not only to the less developed countries in the postwar years, but also to the advanced countries like the United States and the United Kingdom during their early economic take-offs, starting in the late 18th and 19th century, respectively. Finally, he proposes a two-sector constant elasticity of substitution (CES)-type growth model and simulates the model to replicate and explain the possible mechanism behind such a nonlinear pattern of movements in labor's share.
View full document [pdf]