Adjustment Costs and Immiserizing Growth in LDCs

13 Pages Posted: 27 Oct 2008  

Sanjib Sarker

Utah State University - Department of Economics and Finance

Reza Oladi

Utah State University - College of Business - Department of Economics

Abstract

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

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

Sanjib Sarker

Utah State University - Department of Economics and Finance

Logan, UT 84322-1400
United States

Reza Oladi (Contact Author)

Utah State University - College of Business - Department of Economics ( email )

3530 Old Main Hill
Logan, UT 84322-3530
United States

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