CARDI, OLIVIER; RESTOUT, ROMAIN - TEPP Fédération de Recherche Travail Emploi et …
We use a two-sector neoclassical open economy model with traded and non-traded goods to investigate both the aggregate and the sectoral e®ects of temporary ¯scal shocks. One central ¯nding is that both sectoral capital intensities and labor supply elasticity matter in determining the response...