Modelling the sectoral allocation of labour in open economy models

© 2017 Canadian Economics Association Indivisible labour is not the only type of non-convexity affecting labour supply decisions. Another type of non-convexity arises in economies with sectors whenever individuals can work in only one sector at a time. I introduce this restriction into an open economy model with a tradeable and a non-tradeable sector, and I use lotteries to convexify the consumption possibilities set. This approach implies that the aggregate elasticity of labour supply becomes infinite. I compare the performance of the model with an analogous model in which the labour supply elasticity is finite. I find that there is a disconnect between the response of wages to monetary shocks and the open economy variables. The labour supply elasticity plays a more important role in the transmission of technology and government expenditure shocks to the real exchange rate and the terms of trade

Has the United States Overinvested in Housing?

Several economists have concluded that housing investment has been excessive relative to industrial investment in the U.S. Most blame provisions of the federal income tax that favor owner-occupied housing.This paper poses the question within a two-sector neoclassical growth model which permits the social return to housing to differ from that to non-housing. The model is estimated using national income accounts and capital stock data from 1929 to 1983. The conclusion is that the return to housing capital is about half that to non-housing capital and that the housing stock should be about 75% of its 1983 volume. Copyright American Real Estate and Urban Economics Association.

Bureau of Economic Analysis Economic Areas, 1995

This file contains the definitions for 172 economic areas in the United States, and it replaces the 183area disaggregation that BEA first defined in 1977 and then revised slightly in 1983. The redefinition was undertaken in 1993 largely to incorporate newly available information on commuting patterns. Documentation contains descriptions of the process and how to use the dataset

Social Returns to Housing and Other Fixed Capital

This paper addresses the efficiency of the allocation of the capital stock between housing and other types of private capital. Using national income data from 1929 to 1986 the returns to housing capital relative to all other private fixed capital are computed. The analysis indicates that the real returns to capital have been much smaller and much more variable for housing than for non-housing fixed capital in the U.S. economy. Copyright American Real Estate and Urban Economics Association.

201 - GDP by Metropolitan Area, Accelerated Release of Data for 2008

Sharon D. Panek, Bureau of Economic Analysis, US Department of Commerce.The BEA has developed estimates of the Gross Domestic Product by metropolitan area and is producing them in a timely manner to assist decision makers needing these data to make real time decisions. The webinar presents the methodology for producing the estimates and evaluations of their quality