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National Price Levels and the Prices of Tradables and Nontradables

Lipsey, Robert E.; Kravis, Irving B. - 2021

This paper examines changes in national price levels and prices of tradables and nontradables and relates them to … price levels increase systematically with the level of a country's per capita income, and the ratios of tradables to … income are associated with declines in the ratio of tradables to nontradables price levels more consistently than with the …

Persistent link: https://www.econbiz.de/10013224694

An Alternative Interpretation of the 'Resource Curse' : Theory and Policy Implications

Hausmann, Ricardo; Rigobón, Roberto - 2021

between two building blocks: specialization in non-tradables and financial market imperfections. We show that if a country has … generates significant volatility in the demand for non-tradables. However, when the non-resource tradable sector disappears, the … economy becomes much more volatile, because shocks to the demand for non-tradables - possibly associated with shocks to …

Persistent link: https://www.econbiz.de/10013235591

Real Exchange Rate Movements and the Relative Price of Non-Traded Goods

Betts, Caroline M. - 2009

We study the quarterly bilateral real exchange rate and the relative price of non-traded to traded goods for 1225 country pairs over 1980-2005. We show that the two variables are positively correlated, but that movements in the relative price measure are smaller than those in the real exchange...

Persistent link: https://www.econbiz.de/10012765991

Revisiting the Commodity Curse : A Financial Perspective

Alberola, Enrique - 2017

We study the response of a three-sector commodity-exporter small open economy to a commodity price boom. When the economy has access to international borrowing and lending, a temporary commodity price boom brings about the standard wealth effect that stimulates demand and has long-run...

Persistent link: https://www.econbiz.de/10012962189

Decomposing Wage Inequality Change Using General Equilibrium Models

Abrego, Lisandro E.; Whalley, John - 2021

This paper presents ex post decomposition analysis of wage inequality change using multi-sector general equilibrium models. The analytical structure used is a specific- factors model of trade, which we calibrate to UK data for the two years 1979 and 1975. We first calibrate our general...

Persistent link: https://www.econbiz.de/10013248534

Inequality and Unemployment in a Global Economy

Helpman, Elhanan - 2010

This paper develops a new framework for examining the distributional consequences of trade liberalization that is consistent with increasing inequality in every country, growth in residual wage inequality, rising unemployment, and reallocation within and between industries. While the opening of...

Persistent link: https://www.econbiz.de/10012758160

Short and Long Run Decompositions of OECD Wage Inequality Changes

Whalley, John; Edwards, Terence Huw - 2021

This paper focuses on the causes of increased wage inequality in OECD countries in recent years and its decomposition into the component factors of trade surges in low wage products and technological change that has preoccupied the trade and wages literature. It argues that the length of...

Persistent link: https://www.econbiz.de/10013231408

Rising Wage Inequality : The Role of Composition and Prices

Autor, David H.; Katz, Lawrence F.; Kearney, Melissa … - 2021

During the early 1980s, earnings inequality in the U.S. labor market rose relatively uniformly throughout the wage distribution. But this uniformity gave way to a significant divergence starting in 1987, with upper-tail (90/50) inequality rising steadily and lower tail (50/10) inequality either...

Persistent link: https://www.econbiz.de/10013233893

On the Instability of Variance Decompositions of the Real Exchange Rate Across Exchange-Rate-Regimes : Evidence from Mexico and the United States

Mendoza, Enrique G. - 2021

Variance decompositions of the Mexico-United States real exchange rate are examined using monthly data on consumer prices and the nominal exchange rate for the period January, 1969 to February, 2000. The results show that the robust result found in industrial-country data that most of the...

Persistent link: https://www.econbiz.de/10013237548

Boom-Bust Cycles in Middle Income Countries : Facts and Explanation

Tornell, Aaron; Westermann, Frank - 2021

nontradables (N) sector grows faster than the tradables (T) sector. Meanwhile, the opposite is true in the aftermath of crisis. We …

Persistent link: https://www.econbiz.de/10013240937