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Dynamic Stability, Wage Subsidies and the Generalized Harris-Todaro Model

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  • M. ALl KHAN

    (Johns Hopkins University,Baltimore, Md. (U.S.A.).)

Abstract

In a recent contribution, Neary has shown that paradoxes and instability correspond in the two-sector model with proportional differentials in factor returns, leading one to downgrade the importance of these paradoxes. In this paper, we examine the extent to which this result extends to the Generalized Harris-Todaro Model of which the proportional differential setting is a simple special case. In developing the argument, we generate a variety of comparativestatics results of consequence for development theory. The implications of these results for the conduct of commercial policy are also brought out.

Suggested Citation

  • M. ALl KHAN, 1980. "Dynamic Stability, Wage Subsidies and the Generalized Harris-Todaro Model," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 19(1), pages 1-24.
  • Handle: RePEc:pid:journl:v:19:y:1980:i:1:p:1-24
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    References listed on IDEAS

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    1. J. Stycos & Robert Weller, 1967. "Female working roles and fertility," Demography, Springer;Population Association of America (PAA), vol. 4(1), pages 210-217, March.
    2. Cassen, Robert H., 1976. "Population and development: A survey," World Development, Elsevier, vol. 4(10-11), pages 785-830.
    3. Carleton, Robert O., 1965. "Labor force participation: a stimulus to fertility in Puerto Rico?," Series Históricas 55, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
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    Cited by:

    1. repec:ebl:ecbull:v:6:y:2007:i:5:p:1-8 is not listed on IDEAS
    2. Gupta, Manash Ranjan, 1995. "Tax on foreign capital income and wage subsidy to the urban sector in the Harris-Todaro model," Journal of Development Economics, Elsevier, vol. 47(2), pages 469-479, August.
    3. Chaudhuri, Sarbajit, 2007. "Foreign capital, welfare and urban unemployment in the presence of agricultural dualism," Japan and the World Economy, Elsevier, pages 149-165.
    4. Chao, Chi-Chur & Yu, Eden S. H., 1995. "The shadow price of foreign exchange in a dual economy," Journal of Development Economics, Elsevier, vol. 46(1), pages 195-202, February.
    5. Yabuuchi, Shigemi, 1997. "Urban unemployment, international labor mobility and welfare," Japan and the World Economy, Elsevier, vol. 9(1), pages 71-79, March.
    6. Beladi, Hamid & Chao, Chi-Chur & Hollas, Daniel, 2013. "How growing asset inequality affects developing economies," Journal of Economics and Business, Elsevier, vol. 68(C), pages 43-51.

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