
KCI등재
학술저널
International Impact of Productivity Shocks with Endogenous Labor Supply
The Two Large Economy Case
- Ali Kocyigit
- 세종대학교 경제통합연구소
- Journal of Economic Integration
- 제13권 제3호
- 등재여부 : KCI등재
- 1998.09
- 464 - 484 (21 pages)
The study constructs a deterministic, overlapping-generations, two-economy model. The analysis is conducted in the context of an infinitely-lived economy where individuals have finite (two-periods) lifetimes. The model shows that a positive productivity shock produces positive correlation between savings and investment despite the fact that there is perfect international capital mobility. Further, the simulation results show that the endogeneity of the labor supply gives rise to cyclical adjustment of the economy towards its steady state. (JEL Classification: F4)
Ⅰ. Introduction
Ⅱ. The Two-Economy Equilibrium
Ⅲ. The Benchmark Model