Delay and Dynamics in Labor Market Adjustment : Simulation Results
We simulate numerically a trade model with labor mobility costs added, modeled in such a way as to generate gross flows in excess of net flows. Adjustment to a trade shock can be slow with plausible parameter values. In our base case, the economy moves 95% of the distance to the new steady state in...
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| Format: | Journal Article |
| Language: | EN |
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2012
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| Online Access: | http://hdl.handle.net/10986/4709 |
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okr-10986-47092021-04-23T14:02:19Z Delay and Dynamics in Labor Market Adjustment : Simulation Results Artuc, Erhan Chaudhuri, Shubham McLaren, John Models of Trade with Imperfect Competition and Scale Economies F120 Trade Policy International Trade Organizations F130 We simulate numerically a trade model with labor mobility costs added, modeled in such a way as to generate gross flows in excess of net flows. Adjustment to a trade shock can be slow with plausible parameter values. In our base case, the economy moves 95% of the distance to the new steady state in approximately eight years. Gross flows have a large effect on this rate of adjustment and on the normative effects of trade. Announcing and delaying the liberalization can build--or destroy--a constituency for free trade. We study the conditions under which these contrasting outcomes occur. 2012-03-30T07:29:21Z 2012-03-30T07:29:21Z 2008 Journal Article Journal of International Economics 00221996 http://hdl.handle.net/10986/4709 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
EN |
| topic |
Models of Trade with Imperfect Competition and Scale Economies F120 Trade Policy International Trade Organizations F130 |
| spellingShingle |
Models of Trade with Imperfect Competition and Scale Economies F120 Trade Policy International Trade Organizations F130 Artuc, Erhan Chaudhuri, Shubham McLaren, John Delay and Dynamics in Labor Market Adjustment : Simulation Results |
| relation |
http://creativecommons.org/licenses/by-nc-nd/3.0/igo |
| description |
We simulate numerically a trade model with labor mobility costs added, modeled in such a way as to generate gross flows in excess of net flows. Adjustment to a trade shock can be slow with plausible parameter values. In our base case, the economy moves 95% of the distance to the new steady state in approximately eight years. Gross flows have a large effect on this rate of adjustment and on the normative effects of trade. Announcing and delaying the liberalization can build--or destroy--a constituency for free trade. We study the conditions under which these contrasting outcomes occur. |
| format |
Journal Article |
| author |
Artuc, Erhan Chaudhuri, Shubham McLaren, John |
| author_facet |
Artuc, Erhan Chaudhuri, Shubham McLaren, John |
| author_sort |
Artuc, Erhan |
| title |
Delay and Dynamics in Labor Market Adjustment : Simulation Results |
| title_short |
Delay and Dynamics in Labor Market Adjustment : Simulation Results |
| title_full |
Delay and Dynamics in Labor Market Adjustment : Simulation Results |
| title_fullStr |
Delay and Dynamics in Labor Market Adjustment : Simulation Results |
| title_full_unstemmed |
Delay and Dynamics in Labor Market Adjustment : Simulation Results |
| title_sort |
delay and dynamics in labor market adjustment : simulation results |
| publishDate |
2012 |
| url |
http://hdl.handle.net/10986/4709 |
| _version_ |
1764392467118948352 |