KALDORIAN DISAGGREGATION, TEMPORARY MIGRATION AND WELFARE : THEORY AND CALIBRATION

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

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Author(s)

  • Tao Cai
  • Jennifer T. Lai
  • Bharat Hazari
  • Vijay Mohan

Related Research Unit(s)

Detail(s)

Original languageEnglish
Pages (from-to)193-221
Journal / PublicationPacific Economic Review
Volume23
Issue number2
Early online date11 May 2016
Publication statusPublished - May 2018

Conference

TitleConference on China's Financial Liberalization
PlaceFinland
CityHelsinki
Period15 - 16 September 2016

Abstract

In this paper we examine a four-good, four-factor model of trade with two agents: domestic residents and temporary migrants. This modelling framework has three important features: first, there are two tradable and two non-tradable goods; second, there exists Kaldorian disaggregation in consumption; third, the structure incorporates a combination of price adjustment. The results emphasize the influence of factor accumulation at constant traded goods prices on the variable prices of non-traded goods. We also analyse the impact of temporary migration and other structural parameters on domestic welfare. To highlight our results, our model is calibrated on a typical small open economy, Hong Kong, and a wide array of situations are presented when temporary migration and Kaldorian disaggregation can reduce domestic welfare in response to exogenous shocks.

Bibliographic Note

Full text of this publication does not contain sufficient affiliation information. With consent from the author(s) concerned, the Research Unit(s) information for this record is based on the existing academic department affiliation of the author(s).

Citation Format(s)

KALDORIAN DISAGGREGATION, TEMPORARY MIGRATION AND WELFARE : THEORY AND CALIBRATION. / Cai, Tao; Lai, Jennifer T.; Hazari, Bharat; Mohan, Vijay.

In: Pacific Economic Review, Vol. 23, No. 2, 05.2018, p. 193-221.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review