This article investigates the long-run relationship between prices and wage-adjusted productivity as well as between real wages and average labor productivity at the industry level for a panel of 459 U.S. manufacturing industries over the period 1956–1996. Panel cointegration test results...

This work explores three critical assumptions of the Balassa–Samuelson productivity differential model for the short and medium run: wage equalization, competitive labor markets, and purchasing power parity. The data reveal violations in these assumptions for France, Germany, Japan, the U.K.,...

This paper investigates the near unit root behavior of interest rate differentials across countries using a symmetric Band–TAR model that allows for a heteroscedastic error process. We find that the time series properties of monthly short-term interest differentials over the period 1974–2005...