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This paper emphasizes the importance of total factor productivity (TFP) developments in the nontradables sector to quantitatively demonstrate that the time-honored Balassa-Samuelson hypothesis does not generally apply to episodes of economic growth. Though the Balassa- Samuelson hypothesis...
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gain identification, the general problem of identification in the context of the standard structural VAR (SVAR) or … structural MARMA (SMARMA) model employed for that purpose, the question of whether "forward" looking (rational) expectations (FLE …
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