scholarly journals Real Wages and the Terms of Trade: Alternative Indexation Rules for an Open Economy

10.3386/w1046 ◽  
1982 ◽  
Author(s):  
Richard Marston
Keyword(s):  
Open Economy ◽  
Terms Of Trade ◽  
Real Wages

Risk Aversion and Unemployment in an Open Economy

2000 ◽  
Vol 49 (2) ◽  
Author(s):  
Pia Weiß
Keyword(s):  
Risk Aversion ◽  
Open Economy ◽  
Small Open Economy ◽  
Risk Behaviour ◽  
Terms Of Trade ◽  
Individual Risk ◽  
Risk Averse ◽  
Search Frictions ◽  
Long Run ◽  
The Impact

AbstractThe paper analyses the impact which risk aversion has on a small open economy characterised by search frictions on the labour market. It is shown that the long-run qualitative effects caused by a terms-of-trade shock are independent of individual risk behaviour. As far as quantitative aspects are concerned risk aversion always leads to higher equilibrium employment; however the increase in unemployment due to a price shock is the higher the more risk-averse individuals are.

The trade-off between real wages and employment in an open economy (Belgium)

1981 ◽  
Vol 15 (1) ◽  
pp. 1-40 ◽  
Author(s):  
Jacques H. Drèze ◽  
Franco Modigliani
Keyword(s):  
Open Economy ◽  
Real Wages ◽  
Trade Off

The Effects of Tariffs and Real Wages on Employment in a Barro-Grossman Model of an Open Economy

1980 ◽  
Vol 82 (2) ◽  
pp. 167 ◽  
Author(s):  
Per-Olov Johansson ◽  
Karl-Gustaf Löfgren ◽  
Karl-Gustaf Lofgren
Keyword(s):  
Open Economy ◽  
Real Wages ◽  
Grossman Model

Theoretical and Practical Implications of I.M.F. Conditionality in Zambia

1986 ◽  
Vol 24 (3) ◽  
pp. 395-422 ◽  
Author(s):  
Neva Seidman Makgetla
Keyword(s):  
Low Income ◽  
Terms Of Trade ◽  
Living Standards ◽  
Real Wages ◽  
Colonial Era ◽  
Income Groups ◽  
Low Income Groups ◽  
Per Capita ◽  
High Degree ◽  
Practical Implications

Zambia has faced an economic crisis since 1975. Living standards for most of the population have deteriorated sharply, with falling real wages and a drop in G.D.P. per capita by about a quarter. At the same time, the gap between the high- and low-income groups has probably widened.Zambia's economic difficulties originated in international factors. In the two decades of independence, and unusually high degree of external dependency, inherited from the colonial era, continued to chatacterise the economy. Imported inputs accounted for at least one-third of all costs in mining and manufacturing, as may be seen from Table I. Meanwhile, the production of copper and relate minerals contributed a steady nine-tenths of export revenues. But in 1975, the terms of trade for copper plummeted by nearly 50 per cent, and merchandise imports promptly contracted by almost one-quarter, seriously affecting production. Since then the price of copper has stagnated.

scholarly journals Unemployment rate dynamics in small open economy: The case of Serbia

Industrija ◽  
2020 ◽  
Vol 48 (4) ◽  
pp. 7-22
Author(s):  
Aleksandra Anić ◽  
Zorica Mladenović
Keyword(s):  
Unemployment Rate ◽  
Open Economy ◽  
Small Open Economy ◽  
Dynamic Modelling ◽  
Real Effective Exchange Rate ◽  
Real Wages ◽  
Vector Autoregressive ◽  
The Great Recession ◽  
Dynamic Relationship ◽  
Long Run

Dynamic relationship among unemployment rate and key macroeconomic variables is explored for the Serbian economy that has been characterized by high unemployment rates since the outcome of the Great Recession. This analysis reveals how effective policy measures can be in reducing unemployment rate. Cointegrated vector autoregressive model is employed for the period 2014-2019. Prior to multivariate dynamic modelling, the validity of hysteresis hypothesis for unemployment rate is assessed. Obtained results show significant negative long-run effect of real wages on unemployment rate, and positive long-run effect of real effective exchange rate appreciation on real wages. For further reduction of unemployment rate demand-side measures should be employed.

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