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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/19405| Title: | Regional adjustment dynamics |
| Keywords: | J30 ddc:330 Regional adjustments wage formation wage-price spiral migration regional unemployment hysteresis Regionalökonomik Schock Wirtschaftliche Anpassung Regionale Lohnstruktur Preis-Lohn-Spirale Regionale Arbeitsmobilität Regionale Arbeitslosigkeit Hysteresis Theorie |
| Issue Date: | 16-Oct-2013 |
| Publisher: | |
| Description: | The aim of the paper is to develop a theoretical framework for analyzing regional adjustment processes after idiosyncratic shocks. The model builds on the macroeconomic approach with monopolistic competition on goods and labor markets. It is shown how interregional factor mobility affects wage-setting behavior and labor supply. The dynamics of this extended model are explicitly taken into account. For a special case we can derive the characteristics of the adjustment process analytically. Under certain conditions the model exhibits hysteresis, i.e. temporary shocks on the price level or the unemployment rate can have a permanent effect on production and potential labor supply. It is argued that a suitable method for investigating regional adjustment processes empirically would be a panel VAR approach with integrated and co-integrated variables. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/19405 |
| Other Identifiers: | http://hdl.handle.net/10419/19405 ppn:335327079 RePEc:zbw:hwwadp:26180 |
| Appears in Collections: | EconStor |
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