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Microeconomic Reform and Employment in the Short Run *
Author(s) -
ADAMS PHILIP D.,
PARMENTER BRIAN R.
Publication year - 1994
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1994.tb01819.x
Subject(s) - short run , economics , economic reform , general equilibrium theory , goods and services , labour economics , applied general equilibrium , macroeconomics , market economy , china , political science , law
In the long run microeconomic reform will improve living standards by increasing the quantity of goods and services that the economy can produce with its limited productive resources. However, in the short run, reform might lead to a reduction in the usage of productive resources, especially labour, rather than to an increase in output. In this paper we examine the short‐run relationship between micro‐economic reform and employment in Australia using simulations with an applied general equilibrium model