شوک بخشی، سرمایه انسانی و کارگران آواره شده

This paper extends the Lucas–Prescott island economy to allow for finite lived agents and sector specific human capital. Unlike the Lucas–Prescott model in which workers who leave declining sectors find employment in expanding sectors, this models predicts that workers who leave declining sectors may simply become non-employed, whereas increased employment in expanding sectors is accomplished by increasing the rate at which new entrants enter the sector.