Global Imbalances and Structural Change in the United States /
Kehoe, Timothy J.
Global Imbalances and Structural Change in the United States / Timothy J. Kehoe, Kim J. Ruhl, Joseph B. Steinberg. - Cambridge, Mass. National Bureau of Economic Research 2013. - 1 online resource: illustrations (black and white); - NBER working paper series no. w19339 . - Working Paper Series (National Bureau of Economic Research) no. w19339. .
August 2013.
Since the early 1990s, as the United States borrowed heavily from the rest of the world, employment in the U.S. goods-producing sector has fallen. We construct a dynamic general equilibrium model with several mechanisms that could generate declining goods-sector employment: foreign borrowing, nonhomothetic preferences, and differential productivity growth across sectors. We find that only 15.1 percent of the decline in goods-sector employment from 1992 to 2012 stems from U.S. trade deficits; most of the decline is due to differential productivity growth. As the United States repays its debt, its trade balance will reverse, but goods-sector employment will continue to fall.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Global Imbalances and Structural Change in the United States / Timothy J. Kehoe, Kim J. Ruhl, Joseph B. Steinberg. - Cambridge, Mass. National Bureau of Economic Research 2013. - 1 online resource: illustrations (black and white); - NBER working paper series no. w19339 . - Working Paper Series (National Bureau of Economic Research) no. w19339. .
August 2013.
Since the early 1990s, as the United States borrowed heavily from the rest of the world, employment in the U.S. goods-producing sector has fallen. We construct a dynamic general equilibrium model with several mechanisms that could generate declining goods-sector employment: foreign borrowing, nonhomothetic preferences, and differential productivity growth across sectors. We find that only 15.1 percent of the decline in goods-sector employment from 1992 to 2012 stems from U.S. trade deficits; most of the decline is due to differential productivity growth. As the United States repays its debt, its trade balance will reverse, but goods-sector employment will continue to fall.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.