Technology Shocks and Employment in Open Economies

Abstract: A growing body of empirical evidence suggests that a positive technology shock leads to a temporary decline in employment. A two-country model is used to demonstrate that the open economy dimension can enhance the ability of sticky price models to account for the evidence. The reasoning is as follows. An improvement in technology appreciates the nominal exchange rate. Under producer-currency pricing, the exchange rate appreciation shifts global demand toward foreign goods away from domestic goods. This causes a temporary decline in domestic employment. If the expenditure-switching effect is sufficiently strong, a technology shock also has a negative effect on output in the short run.

Angaben zum Objekt

• Standort: Deutsche Nationalbibliothek Frankfurt am Main
• Umfang: Online-Ressource
• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Technology Shocks and Employment in Open Economies ; volume:1 ; number:1 ; year:2007 ; extent:27 ; Economics / Journal articles. Journal articles ; 1, Heft 1 (2007) (gesamt 27)

Beteiligte, Orts- und Zeitangaben

• Urheber: Tervala, Juha

Weitere Informationen

• DOI: 10.5018/economics-ejournal.ja.2007-15
• URN: urn:nbn:de:101:1-2412121755261.880663996543
• Rechteinformation: Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
• Letzte Aktualisierung: 15.08.2025, 07:37 MESZ