EconPapers    
Economics at your fingertips  
 

Productivity, Tradability, and the Long-Run Price Puzzle

Paul Bergin, Reuven Glick () and Alan Taylor ()

No 10569, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

JEL-codes: F40 F43 (search for similar items in EconPapers)
Date: 2004-06
Note: DAE ITI PR
References: View complete reference list from CitEc
Citations: View citations in EconPapers (24) Track citations by RSS feed

Published as Bergin, Paul R. & Glick, Reuven & Taylor, Alan M., 2006. "Productivity, tradability, and the long-run price puzzle," Journal of Monetary Economics, Elsevier, vol. 53(8), pages 2041-2066, November.

Downloads: (external link)
http://www.nber.org/papers/w10569.pdf (application/pdf)

Related works:
Chapter: Productivity, Tradability, and the Long-Run Price Puzzle (2017) Downloads
Journal Article: Productivity, tradability, and the long-run price puzzle (2006) Downloads
Working Paper: Productivity, Tradability, and the Long-Run Price Puzzle (2005) Downloads
Working Paper: Productivity, Tradability and the Long-Run Price Puzzle (2004) Downloads
Working Paper: Productivity, tradability, and the long-run price puzzle (2004) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:10569

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w10569

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2019-10-12
Handle: RePEc:nbr:nberwo:10569