search query: @author Canzoneri, M. / total: 2
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| Author: | Canzoneri, M. Cumby, R. |
| Title: | Relative labor productivity and the real exchange rate in the long run: evidence for a panel of OECD countries |
| Journal: | Journal of International Economics
1999 : APR, VOL. 47:2, p. 245-266 |
| Index terms: | OECD EXCHANGE RATES LABOUR |
| Language: | eng |
| Abstract: | The Balassa-Samuelson model, which explains real exchange rate movements in terms of sectoral productivities, rests on two components. First, it implies that the relative price of non-traded goods in each country should reflect the relative productivity of labor in the traded and non-traded goods sectors. Second, it assumes purchasing power parity holds for traded goods. The authors test both of these using a panel of OECD countries. The authors' results suggest that relative prices generally reflect relative labor productivities in the long run. |
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