Resource Center

Advanced Search
Technical Papers
Working Papers
Research Memoranda
GTAP-L Mailing List
GTAP FAQs
CGE Books/Articles
Important References
Submit New Resource

GTAP Resources: Resource Display

GTAP Resource #5091

"Modelling Involuntary Unemployment in Applied GE Models"
by Pant, Hom and Peter Warr


Abstract
Involuntary unemployment is a regrettable feature of the world, but not of most general equilibrium models. Standard attempts to incorporate involuntary unemployment into such models have rested on mechanistic and arbitrary assumptions about wage rigidity. This paper recognises that the difficulty of modelling the reality of involuntary unemployment is that the currently used models lack a crucial piece of information: the role that the level of unemployment plays in labour market decisions.

This paper outlines a theory in which unemployment rates enter into the decision making process of individual agents which in turn yields the missing equation. It then draws on the empirical literature to parameterise it and incorporates this equation in the GTAP model to derive a dynamic GTAP model with endogenous unemployment (DGTAPU). The model is then simulated with a number of stylised scenarios and illustrative results are presented.
It is hoped that this paper will induce additional research in improving the specification of the ‘new’ equation and the precision of policy analysis.


Resource Details (Export Citation) GTAP Keywords
Category: 2016 Conference Paper
Status: Published
By/In: Presented at the 19th Annual Conference on Global Economic Analysis, Washington DC, USA
Date: 2016
Version:
Created: Pant, H. (4/16/2016)
Updated: Pant, H. (6/12/2016)
Visits: 1,350
- Dynamic modeling
- Economic growth
- Labor market issues
- Technological change
- Not Applicable


Attachments
If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.


Public Access
  File format GTAP Resource 5091  (730.6 KB)   Replicated: 0 time(s)


Restricted Access
No documents have been attached.


Special Instructions
No instructions have been specified.


Comments (0 posted)
You must log in before entering comments.

No comments have been posted.