CARDI, Olivier; RESTOUT, Romain - Institut de Recherche Économique et Sociale (IRES), … - 2013
This paper investigates the relative price and relative wage effects of a higher productivity in the traded sector compared with the non traded sector in a two-sector open economy model with imperfect substitutability in hours worked across sectors. The Balassa-Samuelson [1964] model predicts...