Beladi, Hamid and Mandal, Biswajit (2011): Recessionary shock and factor return in an underemployed economy.
Download (97kB) | Preview
This paper builds a general equilibrium model for a small open economy with unemployment of unskilled labor to assess the impact of a recessionary shock. It is shown that irrespective of the factor intensity assumption skilled wage and rental ratio goes up if recession led price fall is significant. However, when the price fall is not sufficiently big, factor intensity assumption becomes crucial for the eventual effect on factors’ return ration.
|Item Type:||MPRA Paper|
|Original Title:||Recessionary shock and factor return in an underemployed economy|
|English Title:||Recessionary Shock and Factor Return in an Underemployed Economy|
|Keywords:||International Trade, General Equilibrium|
|Subjects:||D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D50 - General
F - International Economics > F1 - Trade > F11 - Neoclassical Models of Trade
|Depositing User:||Biswajit Mandal|
|Date Deposited:||27. Sep 2011 12:41|
|Last Modified:||29. Jun 2015 14:56|
Batra, R. and H. Beladi (1988) – Specific factors, unemployment and trade theory, Weltwirtschftliches Archiv, 124, pp 435-43.
Batra, R. and H. Beladi (1989) – Pattern of trade between underemployed economies, Economica, 57, pp 485-93.
Chaudhuri, S. (2009) – Economic Recession and Informal Sector Workers, MPRA paper no.18033. http://mpra.ub.uni-muenchen.de/18033/
Jones, R.W. (1965) – The Structure of Simple General Equilibrium Models. Journal of Political Economy, 73, pp.557-572.
Jones, R.W. (1971) – A three-factor model in theory, trade and history. In Bhagwati, J et al (Eds) Trade, Balance of Payments and Growth, North- Holland, Amsterdam, pp. 3-21.
Mandal, B., Marjit, S. and Beladi, H. (2010) – Recessionary Shock, Capital Mobility and the Informal Sector, mimeo, Centre for Studies in Social Sciences.
Marjit, S., Kar, S. and Cahudhuri, S. (2010) – Recession in the skilled sector and Implications for informal wage, Research in Economics (forthcoming).
UNCTAD (2009) – Global economic crisis: implications for trade and development, Report by UNCTAD Secretariat.