Productivity, tradability, and the long-run price puzzle
By: Paul Bergin, Reuven Glick, Alan M. Taylor.
Contributors: Glick, Reuven.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10569; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10569.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Prices -- Case studies.; Industrial productivity -- Case studies.
Genres: Case studies.
Description: "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"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
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Mode of access: World Wide Web.