Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Department of Economics, Stockholm University Research Papers in Economics, Department of Economics, Stockholm University

No 2000:10:
What We Cannot Learn from the Irish Experience: A fundamental Asymmetry of Asymmetric Shocks

Fredrik Andersson () and Rikard Forslid

Abstract: A simple N-country specific-factor model with imperfectly mobile labour is developed. It is shown that effects of country-specific productivity shocks hitting a small country are fundamentally asymmetric. A positive shock will be accomodated by a moderate wage increase and sizable in-migration, whereas a negative shock will be accomodated by a significant decrease in wages and moderate out-migration. The effects of shocks in a monetary union are discussed, and it is argued that the results are consistent with the recent Irish experience. The welfare effects of small economics fluctuations are also discussed.

Keywords: migration; assymmetric shocks; (follow links to similar papers)

JEL-Codes: E24; F22; (follow links to similar papers)

14 pages, August 11, 2000

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

wp00_10.pdf    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Sten Nyberg ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:sunrpe:2000_0010 This page was generated on 2016-11-07 22:04:13