Which model can we use to analyze the short-run effects of migration?
A) specific-factors
B) Ricardian
C) Heckscher-Ohlin
D) purchasing power parity

Question

Quizplus · Accepted Answer

The specific-factors model is the best choice for analyzing the short-run effects of migration as it explicitly takes into account the mobility of labor between different sectors within a country. In the short run, migration can cause labor shortages in certain sectors, leading to a decrease in output and an increase in wages in those sectors. Conversely, there may be an increase in output and a decrease in wages in industries that are not impacted by the migration. The specific-factors model can help economists understand the magnitude and distribution of these effects. The other models listed are more suited for analyzing long-run effects or the impact of international trade.

Which Model Can We Use to Analyze the Short-Run Effects