Trade, money and employment in intertemporal optimizing models of growth

@inproceedings{Klump2001TradeMA,
  title={Trade, money and employment in intertemporal optimizing models of growth},
  author={Rainer Klump},
  year={2001}
}
This paper unites elements of Sidrauski's (1967) monetary model of growth, Ventura's (1997) analysis of the effects of international trade on growth, and some work on the labour market implications of growth by Barro and Sala-i-Martin (1995). It was shown by Ventura that, for a small economy, free international trade leads to an increase of the de facto elasticity of substitution between the domestic factors of production. The first part of the paper analyses how such an increase in the… CONTINUE READING