On the Decline of Agriculture.;Evidence from Italian Regions in the Post-WWII Period
This article investigates the long-run decline of the agricultural sector during economic development and its contribution to this process. A two-sector model is proposed where the share of agriculture, relative prices and capital accumulation are simultaneously determined within the economy. Under this general equilibrium framework, short-run adjustments with respect to long-run equilibria are admitted through a set of alternative dynamic specifications. The model is then applied to;the panel dataset of 20 Italian regions observed over the period 1951-2002 of dramatic economic development but still persistent disparities between Southern and Northern regions.
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