| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 987036 | Structural Change and Economic Dynamics | 2007 | 20 Pages |
Abstract
We study the joint dynamics of labor reallocation and environmental change when workers have rational expectations and incur migration costs. We emphasize the relation between parameter values and the area of state space in which indeterminacy of equilibria can occur. Unlike the one-dimensional model in which the wage differential adjusts instantaneously, here the measure of the region of indeterminacy is not monotonic in the cost of adjustment.
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Authors
Larry Karp, Thierry Paul,