Modelling the sectoral allocation of labour in open economy models
本文在开放经济模型中引入劳动力只能在一个部门工作的非凸性约束，通过彩票方法使消费集凸化，发现劳动力供给弹性趋于无穷，且工资对货币冲击的反应与开放经济变量脱节，劳动力供给弹性在技术冲击和政府支出冲击传导中作用更大。
Abstract Indivisible labour is not the only type of non‐convexity affecting labour supply decisions. Another type of non‐convexity arises in economies with sectors whenever individuals can work in only one sector at a time. I introduce this restriction into an open economy model with a tradeable and a non‐tradeable sector, and I use lotteries to convexify the consumption possibilities set. This approach implies that the aggregate elasticity of labour supply becomes infinite. I compare the performance of the model with an analogous model in which the labour supply elasticity is finite. I find that there is a disconnect between the response of wages to monetary shocks and the open economy variables. The labour supply elasticity plays a more important role in the transmission of technology and government expenditure shocks to the real exchange rate and the terms of trade.