Structural Economic Dynamics: Methods and Theories

The aim of this paper is to outline an operational framework for the analysis of structural economic dynamics, to discuss some of the most important theories of long-run structural change, and to highlight the decisional framework likely to be relevant in the case of economic systems subject to processes of structural change. The method of structural economic dynamics is associated with the criterion of relative invariance. According to this criterion: (i) the analyst identifies certain characteristics of the economic system that are likely to be resistant to change (resistance points): (ii) the over-all set of structural data is allowed to change in the long run.The method of structural economic dynamics brings with it a specific combination of investigation techniques: medium-run forecasts associated with the observation of particular (and historical) resistance points should be complemented by long-run projections formulated in terms of economic theory.