13 Pages Posted: 27 Oct 2008
Using a general equilibrium model of a small developing economy, the authors demonstrate that the introduction of asymmetric adjustment costs makes the rate of urban employment respond to an exogenous shock in the aggregate capital endowment, raising the possibility of several counter-intuitive immiserizing growth scenarios.
Suggested Citation: Suggested Citation
Sarker, Sanjib and Oladi, Reza, Adjustment Costs and Immiserizing Growth in LDCs. Review of Development Economics, Vol. 12, No. 4, pp. 779-791, November 2008. Available at SSRN: https://ssrn.com/abstract=1287893 or http://dx.doi.org/10.1111/j.1467-9361.2008.00480.x
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