 Effects of Macroeconomic Policies on Sectoral PricesYair Mundlak, Domingo Cavallo and Roberto Domenech The World Bank Economic Review, 1990, vol. 4, issue 1, 55-79 Abstract: The effect of macroeconomic policies on the relative prices of internationally traded and domestic goods has been the subject of extensive study. Analysis of the way in which these policies then affect prices at the sectoral level is complicated by the heterogeneity of sectoral productions: even the prices of single products usually are determined by both domestic and traded components. We present a framework which first traces the influence of macropolicy on the relative prices of exports, imports, and home goods. It then accounts for each sector's degree of "tradability," which is based on the importance of trade in sectoral income, and the influence of macroeconomic policy on sectoral prices. To illustrate the use of this approach, it is applied to a simulation of trade liberalization in Argentina. Our results suggest that economywide policies had substantial negative effects on both the real exchange rate and the incentive to agricultural exports. Copyright 1990 by Oxford University Press. Date: 1990 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:oup:wbecrv:v:4:y:1990:i:1:p:55-79 Ordering information: This journal article can be ordered from Access Statistics for this article The World Bank Economic Review is currently edited by Eric Edmonds and Nina Pavcnik More articles in The World Bank Economic Review from World Bank Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK. Contact information at EDIRC. |
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