Search Results - subject:"Balassa–Samuelson effect"

Evolution of the Relative Price of Goods and Services in a Neoclassical Model of Capital Accumulation

Klyuev, Vladimir - 2006

This paper provides an explanation for the secular increase in the price of services relative to that of manufactured goods that relies on capital accumulation rather than on an exogenous total factor productivity growth differential. The key assumptions of the two-sector, intertemporal...

Persistent link: https://www.econbiz.de/10012783078

Productivity, External Balance and Exchange Rates : Evidence on the Transmission Mechanism Among G7 Countries

Corsetti, Giancarlo - 2006

This paper investigates the international transmission of productivity shocks in a sample of five G7 countries. For each country, using long-run restrictions, we identify shocks that increase permanently domestic labor productivity in manufacturing (our measure of tradables) relative to an...

Persistent link: https://www.econbiz.de/10012466182

Real Exchange Rate and Consumption Fluctuations Following Trade Liberalization

Hartelius, Kristian J. - 2006

Two-sector models with traded and non-traded goods have problems accounting for the stylized fact that the real exchange rate appreciates and consumption booms for several years following trade liberalization, or exchange-rate-based stabilization programs, in small open economies. The paper...

Persistent link: https://www.econbiz.de/10014054715

Balassa-Samuelson Meets South Eastern Europe, the CIS and Turkey : A Close Encounter of the Third Kind?

Égert, Balázs - 2006

This paper investigates the importance of the Balassa-Samuelson effect for two acceding countries (Bulgaria and Romania … assumptions of the Balassa-Samuelson effect using yearly data, and then undertakes an econometric analysis of the assumptions on … open and closed sectors, which makes a difference for some of the countries. The Balassa-Samuelson effect is found to play …

Persistent link: https://www.econbiz.de/10014058082

Implications of monetary union for catching-up member states

Sánchez, Marcelo - 2006

We examine the implications of monetary union for macroeconomic stabilisation in catching up participating countries. We allow member states’supply conditions to differ inside the union, especially with regard to sectoral characteristics. Sectoral productivity shocks on balance hamper the...

Persistent link: https://www.econbiz.de/10011604676