Sectoral shocks and home substitution
Moro Alessio
;TANAKA, SATOSHI
2019-01-01
Abstract
We show that the effect of a sectoral shock on the composition of sectoral shares crucially depends on whether the goods produced in the sector are home-substitutable or not. When a productivity shock hits the market sector that produces non-home-substitutable goods (e.g. manufacturing goods), the shock largely affects the composition of consumption shares of market sectors. On the other hand, when a shock hits the market sector that produces home-substitutable goods (e.g. service goods), relocation in shares mainly occurs between the sector and the home sector. We compare our results to those of the traditional three-sector model without a home sector, and show that the missing of the home substitution effects predicts completely different implications for the response of consumption shares to sectoral shocks.File | Dimensione | Formato | |
---|---|---|---|
published.pdf accesso aperto
Tipologia: versione post-print
Dimensione 692.1 kB
Formato Adobe PDF
|
692.1 kB | Adobe PDF | Visualizza/Apri |
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.