Demand and Defective Growth Patterns: The Role of the Tradable and Non-tradable Sectors in an Open Economy

S-Tier
Journal: American Economic Review
Year: 2014
Volume: 104
Issue: 5
Pages: 272-77

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper examines the underlying structural elements of US growth patterns, pre- and post-crisis. Prior to the recession, the US economy exhibited a defective growth pattern driven by outsized domestic demand. As domestic aggregate demand retreats to more sustainable levels relative to total income, the tradable side of the economy is a catalyst for restoring strong growth. A structural rebalancing is already underway; although it is only a third of the economy, the tradable sector generated more than half of gross gains in value-added since the start of the recovery. However, distributional issues loom on the horizon.

Technical Details

RePEc Handle
repec:aea:aecrev:v:104:y:2014:i:5:p:272-77
Journal Field
General
Author Count
2
Added to Database
2026-01-29