Global Imbalances and Structural Change in the United States

Timothy Kehoe, Kim Ruhl and Joseph Steinberg

No 19339, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Since the early 1990s, as the United States borrowed heavily from the rest of the world, employment in the U.S. goods-producing sector has fallen. We construct a dynamic general equilibrium model with several mechanisms that could generate declining goods-sector employment: foreign borrowing, nonhomothetic preferences, and differential productivity growth across sectors. We find that only 15.1 percent of the decline in goods-sector employment from 1992 to 2012 stems from U.S. trade deficits; most of the decline is due to differential productivity growth. As the United States repays its debt, its trade balance will reverse, but goods-sector employment will continue to fall.

JEL-codes: E13 F34 O41 (search for similar items in EconPapers)
Date: 2013-08
Note: EFG IFM
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (35)

Published as Timothy J. Kehoe, Kim J. Ruhl, and Joseph B. Steinberg, "Global Imbalances and Structural Change in the United States," Journal of Political Economy 0, no. 0 (-Not available-): 000. https://doi.org/10.1086/696279

Downloads: (external link)
http://www.nber.org/papers/w19339.pdf (application/pdf)

Related works:
Journal Article: Global Imbalances and Structural Change in the United States (2018)
Working Paper: Global Imbalances and Structural Change in the United States (2015)
Working Paper: Global imbalances and structural change in the United States (2013)
Working Paper: Global Imbalances and Structural Change in the United States (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:19339

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w19339

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().