Centrum Analiz Spoleczno-Ekonomicznych Think Tank Niezalezny Instytut Badawczy Ekonomia stosowana Miedzynarodowe projekty badawcze i doradcze Publikacje i konferencje
Sienkiewicza 12, 00-010 Warsaw, Poland
tel.: +48 226226627
fax: (+48 22) 828 60 69
case@case-research.eu
 Site map
Search 




Latest Publications

Network Report No.82: Institutional Convergence of CIS Towards European Benchmarks

Network Report No.81: The Development Gap Between the CIS and EU 

Study and Analysis No.372: Stages of the Ongoing Global Financial Crisis: Is There a Wandering Asset-Price Bubble?

Study and Analysis No.371: Non-Tariff Barriers in Selected CIS Countries

Network E-brief 7/2008:  The Global Financial Crisis: Causes, Channels of Contagion and Potential Lessons 
e-Newsletter



Last update
2006-11-15


The Transformational Recession under a Resources Mobility Constraint
Authors/Editors: John Lane

Source: Journal of Comparative Economics, vol. 29, no. 3, September 2001, pp. 403-16
Year of issue: 2001
Abstract: A general equilibrium model is developed in which price changes are triggered by a tax reform and resource mobility is restricted.Removing a pretransition price distortion causes a recession in the short run, the size of which is shown to be proportional to the original distortion. Permitting intersectoral wage differences would moderate the recession but at a cost in long-term efficiency. An increase in government spending reduces total unemployment, but at a cost in long-term welfare, while intersectoral transfer through interenterprise debt makes the sectoral distribution of unemployment more equal but does not change total unemployment and may reduce welfare.

 previous



Home page | About CASE | Projects | Events | Publications | Work with CASE