Harrod, Balassa, and Samuelson (re)visit Eastern Europe
نویسندگان
چکیده
منابع مشابه
The Harrod - Balassa - Samuelson Hypothesis : Real Exchange Rates and their Long - Run Equilibrium
Frictionless, perfectly competitive traded-goods markets justify thinking of purchasing power parity (PPP) as the main driver of exchange rates in the long-run. But differences in the traded/non-traded sectors of economies tend to be persistent and affect movements in local price levels in ways that upset the PPP balance (the underpinning of the Harrod-Balassa-Samuelson hypothesis, HBS). This p...
متن کاملNber Working Paper Series the Harrod-balassa-samuelson Hypothesis: Real Exchange Rates and Their Long-run Equilibrium
Jordà is grateful for the support from the Spanish MICINN National Grant SEJ2007-6309 and the hospitality of the Federal Reserve Bank of San Francisco during preparation of this manuscript. Taylor also gratefully acknowledges research support from the Center for the Evolution of the Global Economy at the University of California, Davis. The views expressed herein are those of the authors and do...
متن کاملroductivity and Exchange Rate Dynamics: Supporting the Harrod- Balassa-Samuelson Hypothesis through an ‘Errors in Variables’ Analysis
Standard tests of the Harrod-Balassa-Samuelson (HBS) hypothesis treat productivity levels in and across countries as fixed and observable, and offer little empirical support for the hypothesis. If productivity follows a jump-diffusion process, these standard tests will generate biased estimates, measuring productivity levels with error. This paper instead proposes an ‘errors in variables’ appro...
متن کاملBalassa-Samuelson Effect in the CEECs?
This paper offers a detailed assessment of the Balassa-Samuelson (BS) effect in eight Central and Eastern European countries (CEEC8). Several features distinguish this study from others: First, we investigate a variety of specifications of extended models. Nonhomogeneity of wages, deviations from PPP in tradables and demand side variables are found to importantly contribute to explain inflation...
متن کاملThe Price of Development: the Penn-Balassa-Samuelson effect revisited∗
The Penn-Balassa-Samuelson effect is the stylized fact about the positive correlation between cross-country price level and per-capita income. This paper provides evidence that the price-income relation is actually non-linear and turns negative among low income countries. The result is robust along both cross-section and panel dimensions. Additional robustness checks show that biases in PPP est...
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ژورنال
عنوان ژورنال: Cogent Economics & Finance
سال: 2014
ISSN: 2332-2039
DOI: 10.1080/23322039.2014.920557