Specificity and the macroeconomics of restructuring / Ricardo J. Caballero.

Format:

Book

Author/Creator:

Caballero, Ricardo J.

Series:

Yrjö Jahnsson lectures

Yrjö Jahnsson series

Language:

English

Subjects (All):

Technological innovations--Economic aspects--Mathematical models.

Technological innovations.

Creative destruction--Mathematical models.

Creative destruction.

Asset specificity--Mathematical models.

Asset specificity.

Resource allocation--Mathematical models.

Resource allocation.

Mathematical models.

Physical Description:

xii, 331 pages : illustrations ; 24 cm.

Place of Publication:

Cambridge, Mass. : MIT Press, [2007]

Contents:

1.1 Restructuring and Institutions 3

1.2 Specificity: A Common Thread 4

1.3 Macroeconomic Implications and Outline 6

2 The Empirics of Aggregate Restructuring 15

2.1 Restructuring and Gross Flows 15

2.2 International Evidence on Gross Flows 17

2.3 Gross Flows and Productivity 22

2.4 Gross Flows and Restructuring over the Business Cycle 26

2.5 Institutional Impediments to Restructuring 38

3 The "Fundamental Transformation" 59

3.2 Basic (Static-Single-Margin) Model 62

3.3 Short-Run Macroeconomic Implications 70

3.4 The Destruction Margin 76

4 Efficient Restructuring 87

4.1 Basic (Dynamic) Model of Restructuring 87

4.2 An Opportunity Cost View of Recessions: Efficient Search 97

4.4 Appendix: Numerical Computations 110

III Inefficient Restructuring 117

5 Inefficient Restructuring 119

5.1 Search Frictions and Bargaining 119

5.2 Decoupled Restructuring 122

5.3 Covert and Overt Rigidity 124

5.4 The Slope of the Beveridge Curve 126

5.5 Average Distortions in Restructuring and Unemployment 131

5.6 Economic Policy 138

5.8 Appendix: Numerical Computations 147

6 Financial Market Specificity and Restructuring 153

6.1 A Static Model 154

6.2 A Dynamic Model 162

6.3 Inefficient Restructuring 176

6.5 Appendix: Parameter Restrictions 194

6.6 Appendix: Division of Specific Quasi-Rents 194

6.7 Appendix: Exit Profitability Condition (Steady State) 196

6.8 Appendix: Distributional Dynamics 196

6.9 Appendix: Model Calibration and Simulation Method 198

6.10 Appendix: Detailed Iterative Procedure 200

7 Application: Structural Adjustment 207

7.1 Appropriability in a Simple Model of Adjustment 208

7.2 Gradualism 222

7.3 Managed Adjustment 231

7.5 Appendix: Wage Differentials 235

7.6 Appendix: Welfare Calculations 236

7.7 Appendix: "Overt" Wage Rigidity 238

7.8 Appendix: Adjustment in an Inefficient Economy 238

7.9 Appendix: Parameters 240

IV Institutional and Technological Evolution 243

8 Institutions, Interest Groups, and the Response of Markets and Technology 245

8.1 The Politics of Capital and Labor 246

8.2 The Response of Technology 253

8.4 Appendix: Simulation Parameters 266

9 Application: Three Decades of Unemployment in Western Europe 271

9.1 The French Experience 275

9.2 Appropriability, Putty-Clay Technology, and Factor Substitution 282

9.3 Technological Dimensions of Appropriability 289

9.5 Appendix: Wage Payments 308.

Notes:

Includes bibliographical references and index.

ISBN:

9780262033626

0262033623

OCLC:

73926775