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- handle: 10670/1.mygkiq
- hal: hal-04522948
- doi: 10.1016/j.jinteco.2023.103789
- WOS: 001045899400001
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info:eu-repo/semantics/altIdentifier/doi/10.1016/j.jinteco.2023.103789
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Mots-clés
Labor reallocation CES production function Labor income share Sector-biased government spending shocks Endogenous technological change Factor-augmenting efficiency Open economy E - Macroeconomics and Monetary Economics/E.E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy/E.E2.E25 - Aggregate Factor Income Distribution E - Macroeconomics and Monetary Economics/E.E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook/E.E6.E62 - Fiscal Policy F - International Economics/F.F1 - Trade/F.F1.F11 - Neoclassical Models of Trade F - International Economics/F.F4 - Macroeconomic Aspects of International Trade and Finance/F.F4.F41 - Open Economy Macroeconomics O - Economic Development, Innovation, Technological Change, and Growth/O.O3 - Innovation • Research and Development • Technological Change • Intellectual Property Rights/O.O3.O33 - Technological Change: Choices and Consequences • Diffusion ProcessesSujets proches
Applied science Arts, Useful Useful arts Science, Applied Technological change Breakthroughs, Technological Innovations, Industrial Technological breakthroughs Technical innovations Innovations, TechnologicalCiter ce document
Olivier Cardi et al., « Sectoral fiscal multipliers and technology in open economy », HAL-SHS : économie et finance, ID : 10.1016/j.jinteco.2023.103789
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Résumé
Our evidence reveals that the rise in real GDP is uniformly distributed across sectors following a government spending shock while labor growth is concentrated in non-traded industries. A rationale behind these two findings lies in technology which responds endogenously to the government spending shock. While technology improvements are concentrated in traded industries, technological change is biased toward labor (capital) in non-traded (traded) indus-tries. To account for our evidence, we consider a semi-small open economy model with trad-ables and non-tradables where both capital and technology can be used more intensively. While financial openness amplifies the biasedness of the demand shock toward non-traded goods, labor mobility costs, imperfect substitutability between home-and foreign-produced traded goods and endogenous capital utilization are necessary conditions for giving rise to traded technology improvement. The model can reproduce the size of fiscal multipliers once we let technology adjustment costs together with factor-biased technological change vary across sectors.