Here we supplement some earlier work (Beaudry and Portier [2004]) with some new evidence obtained from Japanese and U.S. sectoral data. Our results show that (i) In the U.S. as well as for Japan, Stock Prices short run movements incorporate most (all) of the long run shocks to Total Factor Productivity and (ii) the Stock Price news is indeed a shock that does not affect sectoral TFP s on impact...

We develop a two-sector economy where each sector is classified as classical/Keynesian (contract/noncontract) in the labor market and traded/nontraded in the product market. We consider the effects of changes in monetary and exchange rate policy on sectoral and aggregate prices and outputs for different sectoral characterizations. Duca (1987) shows that nominal wage rigidity facilitates the eff...

Opening the capital account allows financially constrained firms to raise capital from abroad. Since capital and skilled labor are relative complements, this increases the relative demand for skilled labor versus unskilled labor, leading to higher wage inequality. Using aggregate data and exploiting variation in the timing of capital account openings across 20 mainly European countries, I find ...

In this paper we examine the role played by environmental externalities in shaping the dynamics of an economy with two sectors (a farming sector and an industrial one), free inter-sectoral labor mobility and heterogeneous agents (workers/farmers and industrial entrepreneurs). We find that, in the presence of the environmental pressure of the economic activity of the industrial sector, the stabi...

The purpose of this study is to evaluate the impact of import of technology on Iranian Economy. We have used multi-sectoral and multi–regional computable general equilibrium GTAP model. Transfer of technology from one region to another is another factor effecting productivity. Trade is one of the channels that speeds the transfer of technology. The effect of a ten percent productivity shock, in...

This paper attempts to ascertain if skill-biased technologies developed in R&D-active countries diffuse to the rest of the world. First, using a model of international trade, I show the effects of skill-bias knowledge diffusion. The theory suggests that skill-biased technological diffusion need not increase skill premia, as sectoral biases can exert countervailing forces. Second, I test implica...

This paper explores 40 years of data on R&D partnerships. These R&D partnerships are examples of inter-firm collaboration or strategic partnering, a topic that has recently attracted attention in both the academic literature and the popular press. The paper presents an analysis of some basic historical trends and sectoral patterns in R&D partnering since 1960. It also provides an overview of so...

It is generally admitting that specialization and integration do not evolved in the same direction. The analysis of sectoral production in European countries in this paper shows the contrary. Simulation of cross spectrum functions and panel estimation of cointegration relationship between sectoral GDP show that spillover e¤ects of trade are important within a country but also between countries ...