Template-Type: ReDIF-Paper 1.0
Author-Name:  Dietz Vollrath
Author-X-Name-First: Dietz
Author-X-Name-Last: Vollrath
Author-Workplace-Name: Department of Economics, University of Houston
Author-Email:devollrath@uh.edu
Title: The Dual Economy in Long-run Development
Abstract: This paper provides a dynamic model of the dual economy in which differences in productivity across
sectors arise endogenously. Rather than relying on exogenous price distortions, duality arises because of
differences between sectors in the separability of their fertility and labor decisions. The model demon-
strates how a dual economy will originate, persist, and eventually disappear within a unified growth
framework. It is also shown that agricultural productivity growth will exacerbate the ine±ciencies of a
dual economy and slow down long-run growth.
Length:  28 pages
Creation-Date:  2008-11
File-URL: http://www.uh.edu/econpapers/RePEc/hou/wpaper/2008-03.pdf
File-Format: Application/pdf
Number: 2008-03
Classification-JEL:  O11,O13,O17,O41,Q10
Keywords: Dual economy, unfied growth, endogenous fertility
Handle: RePEc:hou:wpaper:2008-03