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Advanced SearchMarket size, comparative advantage and the natural
We apply the Phelps-Stigliz-Salop natural rate of unemployment model to study the impact of free trade on equilibrium unemployment. We identify two effects (with implications for equilibrium unemployment)that are at work when an an economy opens up to trade: a scale effect; and a relative price effect. The enlargement of markets through trade expands the economy-wide demand for workers in certain jobs invol
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Penerbit | : ., 1996 |
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p. 79 - 98
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