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dc.contributor.authorGaston, Noel
dc.contributor.authorRajaguru, Gulasekaran
dc.date.accessioned2017-01-30T11:15:29Z
dc.date.available2017-01-30T11:15:29Z
dc.date.created2014-03-25T20:00:38Z
dc.date.issued2013
dc.identifier.citationGaston, Noel and Rajaguru, Gulasekaran. 2013. How an Export Boom Affects Unemployment. Economic Modelling. 30: pp. 343-355.
dc.identifier.urihttp://hdl.handle.net/20.500.11937/9873
dc.identifier.doi10.1016/j.econmod.2012.09.007
dc.description.abstract

Does trade affect the equilibrium rate of unemployment? To answer this question, we propose a small open economy model that incorporates realistic features of labour markets. The model predicts that a sustained improvement in the terms of trade lowers unemployment. We test this prediction for the case of Australia, an economy that is subject to large terms of trade movements. We use a novel technique to estimate the structural model based on a combination of traditional econometric procedures and the calibration of time-varying parameters. Both reduced form and the structural estimates reveal strong evidence that higher export prices, capital accumulation in tradeable goods industries and lower unemployment benefits reduce the equilibrium unemployment rate.

dc.publisherElsevier BV * North-Holland
dc.subjectDutch disease
dc.subjectEquilibrium unemployment rate
dc.subjectCalibration
dc.subjectStructural model
dc.titleHow an Export Boom Affects Unemployment
dc.typeJournal Article
dcterms.source.volume30
dcterms.source.startPage343
dcterms.source.endPage355
dcterms.source.issn0264-9993
dcterms.source.titleEconomic Modelling
curtin.department
curtin.accessStatusFulltext not available


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