Povoledo, Laura (2012): Modelling the sectoral allocation of labour in open economy models.
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Abstract
This paper presents an open economy model with tradeable and nontradeable sectors in which individuals cannot supply labour in both sectors at the same time. In this economy, the Frisch elasticity of labour supply is infinite. I analyse how the infinite labour supply elasticity interacts with the Producer Currency Pricing (PCP) and Local Currency Pricing (LCP) assumptions, and I find that it does not significantly alter the empirical performance of the model with respect to a broad range of statistics.
Item Type: | MPRA Paper |
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Original Title: | Modelling the sectoral allocation of labour in open economy models |
Language: | English |
Keywords: | New open economy models; Tradeable and nontradeable sectors; International business cycles; Labour supply elasticity |
Subjects: | E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E24 - Employment ; Unemployment ; Wages ; Intergenerational Income Distribution ; Aggregate Human Capital ; Aggregate Labor Productivity F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics |
Item ID: | 40389 |
Depositing User: | Laura Povoledo |
Date Deposited: | 31 Jul 2012 14:19 |
Last Modified: | 02 Oct 2019 16:48 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/40389 |
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Modelling the sectoral allocation of labour in open economy models. (deposited 30 Jul 2012 20:23)
- Modelling the sectoral allocation of labour in open economy models. (deposited 09 Jul 2013 19:20)
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