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An Equilibrium Model of Sectoral Reallocation

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  • Rogerson, Richard

Abstract

This paper constructs a two-period, two-sector model in which there are permanent sectoral shocks. It analyzes the equilibrium path of individual labor supply, sectoral em ployment, and duration of unemployment in response to these shocks. E quilibrium allocations are shown to be easy to characterize and compa rative statistics results are provided. Copyright 1987 by University of Chicago Press.

Suggested Citation

  • Rogerson, Richard, 1987. "An Equilibrium Model of Sectoral Reallocation," Journal of Political Economy, University of Chicago Press, vol. 95(4), pages 824-834, August.
  • Handle: RePEc:ucp:jpolec:v:95:y:1987:i:4:p:824-34
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