SUBSIDY AND UNEMPLOYMENT IN A MOBILE CAPITAL MODEL

Titas Bandopadhyay

GE, Growth, Math methods from University Library of Munich, Germany

Abstract: The paper builds a three sector model of a small open economy having perfect capital mobility among all the sectors and efficiency- wage relation in the low wage sector. The general equilibrium effects of subsidy policies on urban unemployment and domestic factor income are examined.The main findings in this paper shows that urban subsidy policy softens the problem of urban unemployment ,while the rural subsidy policy aggravates this, if informal sector is linked to the international market and the urban formal sector wage is flexible.This contradicts the results obtained in the traditional HT(1970) model.

Keywords: SUBSIDY; URBAN UNEMPLOYMENT; MIBILE CAPITAL (search for similar items in EconPapers)
JEL-codes: C6 D5 D9 (search for similar items in EconPapers)
Date: 2005-12-01
Note: Type of Document - doc
References: Add references at CitEc
Citations:

Downloads: (external link)
https://econwpa.ub.uni-muenchen.de/econ-wp/ge/papers/0512/0512001.doc (application/msword)

Related works:
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:wpa:wuwpge:0512001

Access Statistics for this paper

More papers in GE, Growth, Math methods from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ( this e-mail address is bad, please contact ).