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Book Cover
Author Mauro, Paolo.

Title Physical capital adjustment within Spain : long-run and short-run analysis / Paolo Mauro and Antonio Spilimbergo
Published [Washington, D.C.] : International Monetary Fund, Research Dept., [2001]
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Description 1 online resource (17 pages) : illustrations
Series IMF working paper ; WP/01/17
IMF working paper ; WP/01/17
Summary Large differences in unemployment rates have persisted for a number of decades among the Spanish regions, and have been associated with macroeconomic costs-a higher NAIRU and lower potential output-and social distress. Differences in per capita incomes also remain large, having declined only gradually over the past few decades. In highly flexible markets, differences in both unemployment rates and per capita incomes might have been reduced rapidly through adjustment in both the labor market and the capital market. Previous studies have shown that large and persistent unemployment differences among the Spanish regions may be attributed in part to labor market rigidities, including a relatively centralized wage bargaining system (Mauro, Prasad, and Spilimbergo, 1999).2 The question of why capital does not move to correct unemployment imbalances, however, has not been addressed in previous work; the role of capital movement in the convergence of per capita income incomes also deserves further consideration. This paper seeks to fill these gaps, and to complement previous work on labor market adjustment, by focusing on capital market adjustment
Bibliography Includes bibliographical references (page 17)
Notes Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. MiAaHDL
digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL
Print version record
Subject Capital movements -- Spain -- Econometric models.
Labor mobility -- Spain -- Econometric models.
Rate of return -- Spain -- Econometric models.
Unemployment -- Spain -- Econometric models.
Form Electronic book
Author Spilimbergo, Antonio.
International Monetary Fund. Research Department.
ISBN 1281089737