On the Limit-Properties of Structural Change

Abstract

Many economic theories deal with some sort of “structure” and with the changes in this structure. We provide mathematical meta-models for studying the limit-properties of continuous structural change. The limit properties of processes are important information in economic modelling. For example, they indicate whether a process can generate long-run growth effects. We show that continuous structural change is a relatively “simple” process. In most cases it is transitory or cyclical. Our meta-models cover different modelling techniques (autonomous, quasi-autonomous and non-autonomous differential equation systems) and many economic notions of structure (e.g. income-distribution, cross-sector labour allocation and investment structure).