New Goods and the Transition to a New Economy

Economie d'Avant Garde Research Report No. 5

41 Pages Posted: 7 Oct 2003

See all articles by Jeremy Greenwood

Jeremy Greenwood

University of Pennsylvania - Department of Economics; National Bureau of Economic Research (NBER)

Gokce Uysal

University of Rochester - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: August 2003

Abstract

The U.S. went through a remarkable structural transformation between 1800 and 2000. In 1800 the majority of people worked in agriculture. Barely anyone did by 2000. What caused the rapid demise of agriculture in the economy? The analysis here concentrates on the development of new consumer goods associated with technological progress. The introduction of new goods into the framework lessens the need to rely on satiation points, subsistence levels of consumption, and the like. The analysis suggests that between 1800 and 2000 economic welfare grew by at least 1.5 percent a year, and maybe as much as 10 percent annually, the exact number depending upon the metric preferred.

Keywords: technological progress, structural change, new goods, welfare indices

JEL Classification: E13, O11, O41

Suggested Citation

Greenwood, Jeremy and Uysal, Gokce, New Goods and the Transition to a New Economy (August 2003). Economie d'Avant Garde Research Report No. 5. Available at SSRN: https://ssrn.com/abstract=439381 or http://dx.doi.org/10.2139/ssrn.439381

Jeremy Greenwood (Contact Author)

University of Pennsylvania - Department of Economics ( email )

Ronald O. Perelman Center for Political Science
133 South 36th Street
Philadelphia, PA 19104-6297
United States
215-898-1505 (Phone)

HOME PAGE: http://jeremygreenwood.net

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Gokce Uysal

University of Rochester - Department of Economics ( email )

Harkness Hall
P.O. Box 270156
Rochester, NY 14627-0158
United States

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