A simple model of sectoral adjustment

摘要: Despite the significance of limited labour mobility across sectors, few attempts have been made to produce dynamic models sectoral adjustment which are consistent with perfect foresight and, yet, flexible enough allow for a variety experiments. This paper proposes simple perfect-foresight model two-sector economies, in aggregate movement takes place through process demographic change. The is tractable that one can easily examine effects intertemporally complicated relative price shocks (both exogenous and endogenous) under assumptions on technology.