Switching Costs and Sectoral Adjustments in General Equilibrium with Uninsured Risk
研究一个两部门经济中，工人面临不可分散的收入风险和沉没的转换成本时，如何影响劳动力流动和均衡效率，并指出政府即使无法提供保险，也可以通过加速劳动力再分配来改善福利。
Consider a two-sector economy subject to recurring technological shocks. These affect earnings in the two sectors differently, creating incentives for workers to switch occupation. Switching costs are sunk. Individuals are risk-averse and cannot diversify their income risk. We characterize the rational expectations equilibrium of the economy and illustrate the extent to which uncertainty and switching costs increase labor immobility. The resulting equilibrium is not even second-best optimal. Even a government that cannot transfer income to achieve insurance can improve matters by speeding up the reallocation of labor across sectors, because that reduces relative price variability. Journal of Economic Literature Classification Numbers: D52, D62, J62.