Phillips, Kerk L. (2010): A Dynamic General Equilibrium Analysis of Korean Immigration Policy. Forthcoming in: Korea and the World Economy , Vol. 13, No. 1 (2012)
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This paper constructs a multi-sector dynamic general equilibrium model for a trading economy. We incorporate three major factors of production: capital, skilled labor & unskilled labor. We solve and calibrate the model using data from Korea. We then consider changes to immigration policy. We are able to examine the effects on output, consumption, wages, and utility. We do this for both the new steady state and for the time-path leading to that steady state. In addition, we are able, if we so wish, to impose a series of unrelated macroeconomic shock to the model. This has the advantage of allowing us to calculate confidence bands around our policy impulse response functions.
We find that allowing skilled labor to immigrate leads to greater welfare gains in the steady state. We also show that there is a great deal of uncertainty surrounding the exact time path to a new steady state in the presence of the typical fluctuations associated with business cycles. We find a great deal of inertia in the transition to a new steady state.
|Item Type:||MPRA Paper|
|Original Title:||A Dynamic General Equilibrium Analysis of Korean Immigration Policy|
|Keywords:||labor migration, factor mobility, dynamic general equilibrium, Korea|
|Subjects:||F - International Economics > F2 - International Factor Movements and International Business > F22 - International Migration
F - International Economics > F1 - Trade > F15 - Economic Integration
F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F42 - International Policy Coordination and Transmission
|Depositing User:||Kerk Phillips|
|Date Deposited:||21. Apr 2012 08:26|
|Last Modified:||13. Feb 2013 02:02|
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A Dynamic General Equilibrium Analysis of Japanese & Korean Immigration. (deposited 26. Jun 2010 17:57)
- A Dynamic General Equilibrium Analysis of Korean Immigration Policy. (deposited 21. Apr 2012 08:26) [Currently Displayed]