Dehejia, Vivek Harsha; Dwyer, Douglas W. - 1999
unanticipated policy shock. After an unanticipated shock, output falls immediately and unemployment spikes, as agents search for …In this paper, we present a simple but rigorous model of the dynamics of output and unemployment in transition. We … more interesting when the reform is fully anticipated. Unemployment falls and output stagnates in anticipation of the …