A fundamental asymmetry of asymmetric shocks
(2004) In European Economic Review 48(2). p.337-351- Abstract
- A simple N-country specific-factor-type model with imperfectly mobile labour is developed. It is shown that the effects of country-specific productivity shocks hitting a small country have fundamentally asymmetric effects: A positive shock will be accommodated by a moderate wage increase and sizeable in-migration, whereas a negative shock will be accommodated by a significant decrease in wages and moderate out-migration. It is argued that the results of the model are consistent with the recent Irish experience. The welfare effects of small economic fluctuations are also discussed. (C) 2002 Elsevier B.V. All rights reserved.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/899272
- author
- Andersson, Fredrik LU and Forslid, R
- organization
- publishing date
- 2004
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- asymmetric shocks, migration
- in
- European Economic Review
- volume
- 48
- issue
- 2
- pages
- 337 - 351
- publisher
- Elsevier
- external identifiers
-
- wos:000220045100005
- scopus:1542540286
- ISSN
- 1873-572X
- DOI
- 10.1016/S0014-2921(02)00262-3
- language
- English
- LU publication?
- yes
- id
- 31e709cd-19ba-416a-85e7-15779375672c (old id 899272)
- date added to LUP
- 2016-04-01 12:24:44
- date last changed
- 2024-01-08 19:36:36
@article{31e709cd-19ba-416a-85e7-15779375672c, abstract = {{A simple N-country specific-factor-type model with imperfectly mobile labour is developed. It is shown that the effects of country-specific productivity shocks hitting a small country have fundamentally asymmetric effects: A positive shock will be accommodated by a moderate wage increase and sizeable in-migration, whereas a negative shock will be accommodated by a significant decrease in wages and moderate out-migration. It is argued that the results of the model are consistent with the recent Irish experience. The welfare effects of small economic fluctuations are also discussed. (C) 2002 Elsevier B.V. All rights reserved.}}, author = {{Andersson, Fredrik and Forslid, R}}, issn = {{1873-572X}}, keywords = {{asymmetric shocks; migration}}, language = {{eng}}, number = {{2}}, pages = {{337--351}}, publisher = {{Elsevier}}, series = {{European Economic Review}}, title = {{A fundamental asymmetry of asymmetric shocks}}, url = {{http://dx.doi.org/10.1016/S0014-2921(02)00262-3}}, doi = {{10.1016/S0014-2921(02)00262-3}}, volume = {{48}}, year = {{2004}}, }