This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Aghion et al. (2003) Openness and Economic Performance P BARRIERS TO ENTRY DD SS
SS’ POST-REFORM EQUILIBRIUM
ENTRY AND EXIT DUE TO REFORM Y
STATE A (PRO-WORKER)
POSSIBLY, STATE B (PRO-EMPLOYER) Y <0 ENTRY
ENTRY EXIT EXIT 1 A 1 B CONSTRAINTS TO PRODUCTION
PRE-REFORM EQUILIBRIUM STATE A (PRO-WORKER) STATE B (PRO-EMPLOYER) Binding
Constraint Supply function in A Supply function in B Production Production 1 Development Economics, LSE Summer School 2007 1 161 ...
View Full Document
This note was uploaded on 12/29/2011 for the course ECO 307 taught by Professor Dublin during the Spring '10 term at SUNY Stony Brook.
- Spring '10