Understanding Spanish dual inflation

We explore the implications of the differential behavior of total factor productivity across sectors to understand the dynamics of the relative prices of services to manufacturing sectors. We find that contrary to the predictions of the Balassa-Samuelson hypothesis, the evolution of relative markups between services and manufacturing sectors has been a key determinant of recent Spanish dual inflation.

MoreLess

Year of publication:	2002-01
Authors:	Estrada, Ángel ; López-Salido, J. David
Institutions:	Banco de España

More details

Extent:	application/pdf
Series:	Banco de España Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 0205 17 pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004980997