"Wage Problems" and the Short-Run Effects of Opening a Small Economy: A Geometrical Analysis

Franke J (1984). "Wage Problems" and the Short-Run Effects of Opening a Small Economy: A Geometrical Analysis. IIASA Collaborative Paper. IIASA, Laxenburg, Austria: CP-84-021

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Abstract

For a small country we analyze the effects of opening for trade on (sectoral and national) employment, production, profit and labor income, and on the country's welfare. We assume the sectoral capital inputs to be fixed. Moreover, the term 'short-run' denotes a time horizon in which wage rates have not yet reached their general competitive equilibrium values. We distinguish between several forms of wage rigidities (sectoral or general; downward or complete; in terms of different commodities and in terms of a constant-utility combination of commodities; rigidity of wage levels or sectoral wage differential). We try to draw a connection to the theory of temporary equilibrium with quantity rationing.

Item Type: Monograph (IIASA Collaborative Paper)
Research Programs: Comparative Analysis (EST)
Depositing User: IIASA Import
Date Deposited: 15 Jan 2016 01:55
Last Modified: 23 Jul 2016 11:44
URI: http://pure.iiasa.ac.at/2556

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