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PURE JOINT PRODUCTION, INCOME DISTRIBUTION, EMPLOYMENT AND THE EXCHANGE RATE
Author(s) -
Mariolis Theodore
Publication year - 2008
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/j.1467-999x.2008.00320.x
Subject(s) - economics , production (economics) , distribution (mathematics) , exchange rate , capital (architecture) , income distribution , joint probability distribution , prices of production , capital income , monetary economics , macroeconomics , market economy , mathematics , history , mathematical analysis , statistics , archaeology , international taxation , tax reform , inequality
This paper deals with an open economy with heterogeneous capital and linear processes of pure joint production from a long‐period perspective. It is shown that: (1) an effective exchange rate change has ambiguous effects on the distribution of income and the competitiveness of domestic output; (2) the matrix of super‐multipliers linking exports to gross output is not always uniquely defined; and (3) the volume of exports and the volume of total employment may be inversely related, even if prices and distribution do not change.