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Conceptually Based Measures of Structural Adaptability

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  • Kala Krishna

Abstract

This paper provides definitions and measures of the extent of adaptability of an economy to exogenous changes in product prices, factor availability and technological change. It is argued that flexibility can in general only be defined relative to the exogenous changes that occur. Using a dual approach, measures of flexibility in response to the particular exogenous shock are developed. In addition, a decomposition of the total change in National Income into its component parts including gains due to flexibility or losses due to inflexibility is developed.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 4039.

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Date of creation: Mar 1992
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Handle: RePEc:nbr:nberwo:4039

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  1. Richardson, J. David, 1971. "Constant-market-shares analysis of export growth," Journal of International Economics, Elsevier, vol. 1(2), pages 227-239, May.
  2. Martin Feldstein & Philippe Bacchetta, 1991. "National Saving and International Investment," NBER Chapters, in: National Saving and Economic Performance, pages 201-226 National Bureau of Economic Research, Inc.
  3. Maurice Obstfeld, 1985. "Capital Mobility in the World Economy: Theory and Measurement," NBER Working Papers 1692, National Bureau of Economic Research, Inc.
  4. Martin Feldstein & Charles Horioka, 1979. "Domestic Savings and International Capital Flows," NBER Working Papers 0310, National Bureau of Economic Research, Inc.
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Cited by:
  1. Kala Krishna & Marie Thursby, 1994. "Structural Flexibility: A Partial Ordering," NBER Working Papers 4615, National Bureau of Economic Research, Inc.

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