Busato, Francesco and Marchetti, Enrico (2009) Endogenous skill cycles. Working Paper. Dipartimento di Economia Pubblica, Università di Roma La Sapienza, Roma.
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Abstract
This paper explores the ability of a class of one-sector models to generate endogenous skills cycles. Skills cycles are here defined as endogenous fluctuations of the composition of equilibrium allocation of labor services. We consider a one sector economy in which there exist one type of capital stock, and a finite number of different labor services, which are assumed to be heterogeneous along the skill/productivity dimension. We apply the Hopf bifurcation theorem and provide necessary conditions on the model's parameters for having a closed orbit as the economy's stable set. We also develop a numerical example (based on the United States economy) showing how this closed orbit can appear under reasonable parameter values.
| Item Type: | Monograph (Working Paper) |
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| Additional Information: | JEL Classification: E32, J24 |
| Uncontrolled Keywords: | Business fluctuations; Cycles; Skills |
| Subjects: | 300 Scienze sociali > 330 Economia |
| Depositing User: | Dipartimento economia e diritto |
| Date Deposited: | 21 Oct 2009 |
| Last Modified: | 20 May 2010 12:02 |
| URI: | http://eprints.bice.rm.cnr.it/id/eprint/1128 |
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