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A Simple Model of Sectoral Adjustment

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Author Info
Matsuyama, Kiminori

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Abstract

Despite the significance of limited labor mobility across sectors, few attempts have been made to produce dynamic models of sectoral adjustment that are consistent with perfect foresight and, yet, flexible enough to allow for a variety of dynamic experiments. This paper proposes a simple perfect-foresight model of two-sector economies in which aggregate sectoral movement of labor takes place through the process of demographic change. The model is tractable enough that one can easily examine the effects of intertemporally complicated relative price shocks (both exogenous and endogenous) under a variety of assumptions on technology. Copyright 1992 by The Review of Economic Studies Limited.

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Publisher Info
Article provided by Blackwell Publishing in its journal Review of Economic Studies.

Volume (Year): 59 (1992)
Issue (Month): 2 (April)
Pages: 375-88
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Handle: RePEc:bla:restud:v:59:y:1992:i:2:p:375-88

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  2. Gene Grossman, 2002. "The Distribution of Talent and the Pattern and Consequences of International Trade," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  3. Stephen Cameron & Shubham Chaudhuri & John McLaren, 2007. "Trade Shocks and Labor Adjustment: Theory," NBER Working Papers 13463, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Danyang Xie, 2008. "Technological Progress and the Urbanization Process," Contributions to Macroeconomics, Berkeley Electronic Press, vol. 8(1), pages 1547-1547. [Downloadable!] (restricted)
  5. Gene M. Grossman, 1999. "Imperfect Labor Contracts and International Trade," NBER Working Papers 6901, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Gilles Duranton & Matthew A. Turner, 2007. "Urban growth and transportation," Working Papers tecipa-305, University of Toronto, Department of Economics. [Downloadable!]
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  7. Akihiko Matsui & Kiminori Matsuyama, 1990. "An Approach to Equilibrium Selection," Discussion Papers 970, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
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  8. Chris Heaton & Paul Oslington, 2006. "Micro Vs Macro Explanations of Post-War US Unemployment Movements," Research Papers 0604, Macquarie University, Department of Economics. [Downloadable!]
  9. Stephen Cameron & Shubham Chaudhuri & John McLaren, 2002. "Mobility costs and the dynamics of labor market adjustment to external shocks: Theory," Discussion Papers 0102-53, Columbia University, Department of Economics. [Downloadable!]
  10. Richard Rogerson, 2005. "Sectoral Shocks, Specific Human Capital and Displaced Workers," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 8(1), pages 89-105, January. [Downloadable!] (restricted)
  11. Willmann, Gerald & Blanchard, Emily, 2007. "Political Stasis or Protectionist Rut? Policy Mechanisms for Trade Reform in a Democracy," Economics Working Papers 2007,21, Christian-Albrechts-University of Kiel, Department of Economics. [Downloadable!]
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  12. Kiminori Matsuyama, 1991. "Custom Versus Fashion: Hysteresis and Limit Cycles in a Random Matching Game," Discussion Papers 940, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
  13. W. Michael Cox, 1993. "Technological unemployment," Research Paper 9314, Federal Reserve Bank of Dallas. [Downloadable!]
  14. Kiminori Matsuyama & Takaaki Takahashi, 1993. "Self-Defeating Regional Concentration," NBER Working Papers 4484, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  15. Oyama, Daisuke & Tercieux, Olivier, 2004. "Iterated Potential and Robustness of Equilibria," MPRA Paper 1599, University Library of Munich, Germany, revised 22 Jan 2009. [Downloadable!]
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  16. Song, Zheng Michael & Storesletten, Kjetil & Zilibotti, Fabrizio, 2009. "Growing like China," CEPR Discussion Papers 7149, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  17. Kiminori Matsuyama, 1991. "Custom Versus Fashion: Path-Dependence and Limit Cycles in a Random Matching Game," Discussion Papers 1030, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
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  18. George-Marios Angeletos & Alessandro Pavan, 2005. "Efficiency and Welfare with Complementarities and Asymmetric Information," NBER Working Papers 11826, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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This page was last updated on 2009-10-26.


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