Showing 1 - 10 of 291
able to generate fragile equilibria. For instance, in this literature the natural unemployment rate is allowed to shift … over time depending on past unemployment. Actually, many European unemployment series seem to exhibit a unit root or … persistence. This view is questioned in the paper using German data on unemployment. A new class of time-series models, the …
Persistent link: https://www.econbiz.de/10005666959
Using a standard complete specialization model of a small open economy within a rigorous intertemporal optimization framework and with contract-based wage rigidity, we show that permanent tariffs lead to a current account deterioration and a fall in employment, contradicting most of the...
Persistent link: https://www.econbiz.de/10005656454
This paper argues that a wealth target is an important feature of an economic policy package. A real exchange rate target can be used as an intermediate target to steer national wealth towards its desired value. Such a policy requires that fiscal policy be used to restrain inflation. This may be...
Persistent link: https://www.econbiz.de/10005789065
This paper discusses how employment vouchers should depend on age in a simple overlapping generations model in which workers are either young or old. We find that young workers should receive higher vouchers as displacement of the old rises and as the deadweight loss from providing vouchers to...
Persistent link: https://www.econbiz.de/10005792290
Long-term unemployment was regarded by contemporaries in the 1930's as a major problem but analysis of it has been … neglected in modern economists' research. This paper presents data on durations of unemployment and a measure of the welfare … costs associated with long-term unemployment. It is argued that only a small minority of the long-term unemployed had high …
Persistent link: https://www.econbiz.de/10005281290
Poor countries must specialize in standardized, labour-intensive commodities. Middle-income countries may have a richer menu of options available to them if their labour force is reasonably well-educated and skilled. This paper is motivated by the possibility that there may exist multiple...
Persistent link: https://www.econbiz.de/10005067410
Spanish manufacturing firms, the paper finds sunk costs hysteresis in entry and exit to be an important factor in determining … much larger than the costs of exiting the market. Finally, although hysteresis exists, its effect on the responsiveness of …
Persistent link: https://www.econbiz.de/10005504782
This paper presents an empirical examination of the importance of hysteresis in international trade. An econometric … model of export determination is developed where the presence of sunk costs causes discontinuous behaviour and hysteresis so … States. The paper finds strong evidence in favour of the presence of pricing-to-market and hysteresis only in the case of …
Persistent link: https://www.econbiz.de/10005497929
This paper fully characterizes the optimal control of a recurrent infectious disease through the use of (non-vaccine) prevention and treatment. The dynamic system may admit multiple steady states and the optimal policy may be path dependent. We find that an optimal path cannot end at a point...
Persistent link: https://www.econbiz.de/10011083552
This paper provides a model of "social hysteresis," whereby long, deep recessions demotivate workers and thereby lead …
Persistent link: https://www.econbiz.de/10011084645