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dc.contributor.authorBergin, Paulen_US
dc.contributor.authorTaylor, Alan M.en_US
dc.contributor.authorGlick, Reuvenen_US
dc.date.accessioned2006-01-04en_US
dc.date.accessioned2010-05-14T11:04:29Z-
dc.date.available2010-05-14T11:04:29Z-
dc.date.issued2005en_US
dc.identifier.urihttp://hdl.handle.net/10419/31368-
dc.description.abstractLong-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, this effect virtually disappears from the data. What is often assumed to be a universal property is actually quite specific to recent times, emerging a half century ago and growing steadily over time. What might potentially explain this historical pattern? We develop an updated Balassa-Samuelson model inspired by recent developments in trade theory, where a continuum of goods are differentiated by productivity, and where tradability is endogenously determined. Firms experiencing productivity gains are more likely to become tradable and crowd out firms not experiencing productivity gains. As a result the usual Balassa-Samuelson assumption—that productivity gains be concentrated in the traded goods sector—emerges endogenously, and the Balassa-Samuelson effect on relative price levels likewise evolves gradually over time.en_US
dc.language.isoengen_US
dc.publisherDep. of Economics, Univ. of California Davis, Calif.en_US
dc.relation.ispartofseriesWorking papers // University of California, Department of Economics 05,11en_US
dc.subject.jelF40en_US
dc.subject.jelF43en_US
dc.subject.jelN10en_US
dc.subject.jelN70en_US
dc.subject.ddc330en_US
dc.subject.stwPreisniveauen_US
dc.subject.stwProduktivitäten_US
dc.subject.stwInternationaler Preiszusammenhangen_US
dc.subject.stwMonopolistischer Wettbewerben_US
dc.subject.stwAußenwirtschaften_US
dc.subject.stwWelten_US
dc.subject.stwBalassa-Samuelson Effekten_US
dc.titleProductivity, tradability, and the long-run price puzzleen_US
dc.typeWorking Paperen_US
dc.identifier.ppn505103206en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:Working Papers, Department of Economics, UC Davis

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