Frensch, Richard; Schmillen, Achim - Institut für Ost- und Südosteuropaforschung (IOS) - 2010
The Balassa-Samuelson hypothesis – i.e. that real exchange rates between each pair of countries increase with the … to downward-biased estimates. We test the Balassa-Samuelson hypothesis with innovative trade-based vari-ety measures to … pairwise regression approach, we find stable and very robust Balassa-Samuelson effects over all our specifications. …