Journey into the Unknown? Economic Consequences of Factor Market Integration under Increasing Returns to Scale
| Autor: | Schäfer, Andreas, Steger, Thomas |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2014 |
| Předmět: |
Kapitalmobilität
Produktionsfaktor Gleichgewicht Increasing returns to scale Capital mobility Migration Multiple equilibria Indeterminacy History vs. expectations O40 jel:E60 Arbeitsmarkt jel:F20 migration jel:H20 jel:O40 Kleines-offenes-Land increasing returns to scale capital mobility migration multiple equilibria indeterminacy history vs. expectations D90 multiple equilibria ddc:330 Marktintegration Wirtschaftliche Anpassung increasing returns to scale Makroökonomischer Einfluss O10 jel:D90 Skalenertrag indeterminacy capital mobility E60 Arbeitsmobilität Neue Bundesländer history vs. expectations Wirtschaftsintegration jel:O10 H20 Theorie F20 |
| Zdroj: | Schaefer, A & Steger, T 2014, ' Journey into the Unknown? Economic Consequences of Factor Market Integration under Increasing Returns to Scale ', Review of International Economics, vol. 22, no. 4, pp. 783-807 . https://doi.org/10.1111/roie.12128 |
| DOI: | 10.1111/roie.12128 |
| Popis: | What are the dynamic consequences of comprehensive integration shocks? The answer to this question appears all but trivial. We set up a dynamic macroeconomic model of a small open economy where both capital and labor are mobile and there are increasing returns to scale at the aggregate level. The model features multiple equilibria as well as (local and global) indeterminacy. Hence, expectations matter for resulting equilibrium dynamics. Despite its simplicity, the model creates a rich set of plausible implications. Our analysis contributes to a better understanding of the interaction between expectations and fundamentals in models with indeterminacy. The model is applied to replicate two striking empirical characteristics of macroeconomic development in East Germany since 1991. |
| Databáze: | OpenAIRE |
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