Technical Progress, Urban Unemployment and Heterogeneous Firms

11 Pages Posted: 20 Oct 2014

See all articles by Hamid Beladi

Hamid Beladi

University of Texas at San Antonio - College of Business - Department of Economics

Reza Oladi

Utah State University - College of Business - Department of Economics

Date Written: November 2014

Abstract

We construct a general equilibrium model of urban unemployment with a continuum of heterogeneous urban firms producing differentiated products in a monopolistic competitive market. We introduce a notion of pattern of technical progress among the heterogeneous urban firms and show that this pattern plays a crucial role in determining the effects of urban technical progress in a developing economy. In particular, we show that the possibility of immiserizing technical progress depends on the pattern of progress among the heterogeneous urban firms.

Suggested Citation

Beladi, Hamid and Oladi, Reza, Technical Progress, Urban Unemployment and Heterogeneous Firms (November 2014). Economics & Politics, Vol. 26, Issue 3, pp. 519-529, 2014. Available at SSRN: https://ssrn.com/abstract=2511975 or http://dx.doi.org/10.1111/ecpo.12047

Hamid Beladi (Contact Author)

University of Texas at San Antonio - College of Business - Department of Economics ( email )

One UTSA Circle
P.O. Box 5636
San Antonio, TX 78249
United States
210-458-7038 (Phone)
210-458-7040 (Fax)

Reza Oladi

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

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

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