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A view receiving increased support is that the height of trade costs in prime export sectors has a strong effect on current account balances: countries specializing in sectors that face relatively high trade costs, such as services, tend to run current account deficits, and similarly, countries...
Persistent link: https://www.econbiz.de/10012001519
This paper examines the impact of trade costs on real exchange rate volatility. We incorporate a multi-country Ricardian model of trade, based on the work of Eaton and Kortum (2002), into a macroeconomic model to show how bilateral real exchange rate volatility depends on relative technological...
Persistent link: https://www.econbiz.de/10014399797
Persistent link: https://www.econbiz.de/10010441893
increase in advance notice increases job to job movements, reduces unemployment flows, and has ambiguous effects on … unemployment. Results are consistent with the fact that North American and European labor markets, despite their differences in job … security provisions, experience similar turnover rates and dissimilar unemployment flows …
Persistent link: https://www.econbiz.de/10014400716
In most macroeconomic models, the substitutability between domestic and foreign goods is calibrated using aggregated data. This imposes homogeneous elasticities across goods, and the calibration is only valid under this assumption. If elasticities are heterogeneous, the aggregate...
Persistent link: https://www.econbiz.de/10014402215
The aim of this paper is to analyze the relationship between labor market flexibility and unemployment outcomes. Using … flexibility have a statistically and significant negative impact on unemployment outcomes (over unemployment, youth unemployment … and long-term unemployment). Among the different labor market flexibility indicators analyzed, hiring and firing …
Persistent link: https://www.econbiz.de/10014396903
This paper studies net employment growth across 21 OECD economies in 1980-97, focusing on experiences within the European Union. It finds that sectoral effects can only partially account for differences in job creation. By contrast, it shows that a policy package including low taxation and...
Persistent link: https://www.econbiz.de/10014400873
restrictions affects the outcome of the matching process and the natural rate of unemployment in Tunisia. The paper concludes that …This paper applies a search matching model with firing restrictions to examine whether the existence of firing … the removal of firing restrictions is likely to produce a favorable but limited impact on unemployment in Tunisia …
Persistent link: https://www.econbiz.de/10014400748
employs the same or another worker, the vacancy rate increases and the unemployment rate declines. However, the scheme …
Persistent link: https://www.econbiz.de/10014399924
This paper uses a Ricardian framework to clarify the role of microeconomic and macroeconomic factors governing the time series and cross-section behavior of sectoral trade balances. Unit labor costs and trade balances are calculated for several sectors for the seven major industrial countries....
Persistent link: https://www.econbiz.de/10014398683