Consumption Structure and Macroeconomics: Structural Change and the Relationship between Inequality and Growth

Reto Foellmi9783540259916, 3540259910

This book offers a novel perspective that allows to incorporate changing consumption and production structure into models of economic growth. Starting from the empirical observation that income and consumption structure are closely related, it develops a tractable theoretical framework which enables to analyze macroeconomic models consistent with these empirical facts. As a result, central macroeconomic phenomena are better understood: the reasons behind long-run growth, structural change, and the influence of inequality on innovations and growth.