• Corpus ID: 239024419

Bridging the short-term and long-term dynamics of economic structural change

@inproceedings{McNerney2021BridgingTS,
  title={Bridging the short-term and long-term dynamics of economic structural change},
  author={James McNerney and Yang Li and Andr{\'e}s G{\'o}mez-Li{\'e}vano and Frank Neffke},
  year={2021}
}
In the short-term, economies shift preferentially into new activities that are related to ones they currently do. Such a tendency should have implications for the nature of an economy’s long-term development as well. We explore these implications using a dynamical network model of an economy’s movement into new activities. First, we theoretically derive a pair of coordinates that summarize long-term structural change. One coordinate captures overall ability across activities, the other captures… 

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