Author : Paul R. Bergin
Publisher :
ISBN 13 :
Total Pages : 70 pages
Book Rating : 4.:/5 (318 download)
Book Synopsis Productivity, Tradability and the Long-run Price Puzzle by : Paul R. Bergin
Download or read book Productivity, Tradability and the Long-run Price Puzzle written by Paul R. Bergin and published by . This book was released on 2004 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Long-run cross-country price data exhibit a puzzle. Today, richer countries exhibit higher price levels than poorer countries, a stylized fact usually attributed to the Balassa- Samuelson' effect. But looking back fifty years, or more, this effect virtually disappears from the data. What is often assumed to be a universal property is actually quite specific to recent times. What might explain this historical pattern? We adopt a framework where goods are differentiated by tradability and productivity. A model with monopolistic competition, a continuum-of-goods, and endogenous tradability allows for theory and history to be consistent for a wide range of underlying productivity shocks"--NBER website