This paper constructs a multi-sector dynamic general equilibrium model for a trading economy. We incorporate three major factors of production: capital, skilled labor & unskilled labor. We solve and calibrate the model using data from Korea. We then consider changes to immigration policy. We are...

This paper constructs a dynamic specific factors model to examine the impact of the economic reunification of North and South Korea. We focus on changes in real wages and output as a result of several kinds of reunification and/or reform. We are interested in the differential impacts on wages of...