Employment Flows, Capital Mobility, and Policy Analysis

Veracierto, Marcelo

doi:10.2139/ssrn.231760

Employment Flows, Capital Mobility, and Policy Analysis

42 Pages Posted: 10 Jun 2000

See all articles by Marcelo Veracierto

Marcelo Veracierto

Federal Reserve Bank of Chicago - Research Department

Date Written: June 2000

Abstract

This paper extends Hopenhayn and Rogerson's analysis of firing taxes by introducing a flexible form of capital and considering transitionary dynamics. The paper finds that capital is not important for understanding the long run and welfare effects of firing taxes. However, capital is crucial for determining the short run consequences of eliminating this type of policy.

JEL Classification: J63, J65, J68

Suggested Citation: Suggested Citation

Veracierto, Marcelo, Employment Flows, Capital Mobility, and Policy Analysis (June 2000). Available at SSRN: https://ssrn.com/abstract=231760 or http://dx.doi.org/10.2139/ssrn.231760