JOINT VIENNA MACROECONOMICS SEMINAR	INVITATION
The Joint Vienna Institute and the Department of Economics and Finance at the Institute for Advanced Studies cordially invite you to the following Joint Vienna Macroeconomics Seminar Tuesday, March 15, 2016 Institute for Advanced Studies Josefstädter Straße 39, 1080 Vienna Lecture Room E02, ground floor 2:30 pm Josep Pijoan-Mas CEMFI, Madrid Investment Demands and Structural Change Abstract: We study the role of changes in the investment rate to account for changes in the sectorial composition of developing economies. Our hypothesis is that the set of goods used for final consumption is different from the set of goods used to form physical capital. Hence, when the investment rate of the economy changes so does the relative demand of different goods. We exploit this insight to estimate, for a panel of countries starting in 1950, the sectoral composition of an aggregate consumption good and an aggregate investment good while the investment share of the economy changes over time. Our estimates are consistent with direct measurements from available Input-Output tables after 1994 for a sub-sample of countries. We find that the increase in investment rate accounts for a large fraction of the increase in the relative size of manufacturing in countries like India, China, South Korea, Vietnam or Paraguay. Likewise, the decline in the investment after 1970 explains a large proportion of the deindustrialization in Japan, Finland, Sweden, or Denmark. Overall, changes in the investment rate account for 1/3 of the hump in manufacturing with development. Paper jointly with Manuel García-Santana (UPF) and Lucciano Villacorta (Banco Central Chile) We are looking forward to seeing you! Institute for Advanced Studies Department of Economics and Finance Josefstädter Straße 39, 1080 Vienna, Austria Tel.: +43 1 599 91 145 e-Mail: economics@ihs.ac.at http://economics.ihs.ac.at		LINKS DIRECTIONS TO IHS on Google maps JOINT VIENNA MACRO SEMINAR on Google calendar ECONOMICS SEMINARS IN VIENNA on Google calendar IHS Department of Economics and Finance Institute for Advanced Studies @IHS_Vienna
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