Advanced Search
MyIDEAS: Login to save this paper or follow this series

Argentine Great Depression: 1975-1990

Contents:

Author Info

Abstract

In the period 1974-1990 Argentina’s income per capita fell by 25%. A Solow growth decomposition shows that at most one quarter of this fall can be explained by a reduction in the capital/labor ratio. A study of labor reallocation shows that between 1973 and 1993 employment expanded the most in sectors with a declining output per worker and this reallocation of labor explains 44% of the fall in output per worker. We argue that policies that increase the cost of capital may explain these observations. Consider a two sector model where capital/labor substitution is low in the tradable goods sector and high in the non-traded goods one. If the steady state capital stocks falls, labor .ows from the tradable goods sector to the non-traded goods one, leading to a reduction in income per capita, productivity and wages. Thus, policies that increase the cost of capital have a direct e.ect on output through the fall in the capital stock and an indirect e.ect that operates through a reallocation of labor induced by the fall in investment.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.utdt.edu/download.php?fname=_116465913307356800.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Universidad Torcuato Di Tella in its series Department of Economics Working Papers with number 026.

as in new window
Length: 48 pages
Date of creation: Jan 2002
Date of revision:
Handle: RePEc:udt:wpecon:026

Contact details of provider:
Web page: http://www.utdt.edu/ver_contenido.php?id_contenido=439&id_item_menu=568
More information through EDIRC

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Ferreira, Pedro Cavalcanti & Pessôa, Samuel de Abreu & Veloso, Fernando A., 2011. "On The Evolution of TFP in Latin America (revised)," Economics Working Papers (Ensaios Economicos da EPGE) 723, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  2. Ferreira, Pedro Cavalcanti Gomes & Pessôa, Samuel de Abreu & Veloso, Fernando A., 2010. "The Evolution of TFP in Latin America: High Productivity when Distortions Were High?," Economics Working Papers (Ensaios Economicos da EPGE) 699, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:udt:wpecon:026. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Martin Cecilia Lafuente).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.