Terms of Trade Shocks and Endogenous Search Unemployment: A Two-Sector Model with Non-Traded Goods
Xinpeng Xu () and
Yu Sheng ()
Pacific Economic Review, 2014, vol. 19, issue 2, 201-215
We develop a simple and tractable two-sector search model featuring a non-traded sector and endogenous search unemployment to examine the impact of terms of trade shocks on unemployment. We show that changes in terms of trade will not only lead to employment reallocation across sectors, as in the traditional trade models, but, more importantly, impact upon search unemployment within each sector. Specifically, we show that an improvement (deterioration) of terms of trade reduces (increases) unemployment rates in both traded and non-traded sectors.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
Working Paper: Terms of Trade Shocks and Endogenous Search Unemployment: A Two-sector Model with Non-Traded goods (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:pacecr:v:19:y:2014:i:2:p:201-215
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1361-374X
Access Statistics for this article
Pacific Economic Review is currently edited by Kenneth S. Chan and Yin-wong Cheung
More articles in Pacific Economic Review from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().