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A Panel Data Analysis of the Brain Gain

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  • Michel, BEINE
  • Cecily, DEFOORT

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics)

  • Frédéric, DOCQUIER

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics)

Abstract

This paper casts the Belgian Great Depression of the 1930s within a dynamic stochastic general equilibrium (DSGE) framework. Results show that a total factor productivity shock within a standard real business cycle model is unsatisfactory. Introducing war expectations in the baseline model produces little improvement. Given the evidence on sticky wages put forward by historians, it shows that a simple DGSE model with sticky wages à la Taylor improves on the result.

Suggested Citation

  • Michel, BEINE & Cecily, DEFOORT & Frédéric, DOCQUIER, 2007. "A Panel Data Analysis of the Brain Gain," Discussion Papers (ECON - Département des Sciences Economiques) 2007024, Université catholique de Louvain, Département des Sciences Economiques.
  • Handle: RePEc:ctl:louvec:2007024
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    References listed on IDEAS

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    More about this item

    Keywords

    human capital; convergence; brain drain;

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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