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The paper studies the differential impact of exchange rate fluctuations on households in a country. I extend earlier research by relaxing the assumption of complete international sectoral specialization. My setup allows for the presence of several different sectors in a given country, each...
Persistent link: https://www.econbiz.de/10014056746
This study investigates the effect of real exchange rate volatility on the distribution of income between labour and capital in South Africa. Both symmetric and asymmetric effects are considered. Using quarterly data for 1985:1-2018:3 and local linear projection, we find that the immediate...
Persistent link: https://www.econbiz.de/10011997494
The paper studies the differential impact of exchange rate fluctuations on households in a country. I extend earlier research by relaxing the assumption of complete international sectoral specialization. My setup allows for the presence of several different sectors in a given country, each...
Persistent link: https://www.econbiz.de/10010283394
The importance of distribution costs in generating the deviations from the law of one price has been well documented. In this paper we show that a two-country flexible price dynamic general equilibrium model driven by exogenous innovations to technology, and with a localized distribution...
Persistent link: https://www.econbiz.de/10014055724
We analyze the distributional consequences of uncertainty shocks in the U.S. economy at a business cycle frequency. Our findings reveal that uncertainty shocks have heterogeneous effects across income and wealth distribution. While their impact on income inequality appears marginal when measured...
Persistent link: https://www.econbiz.de/10014352815
Persistent link: https://www.econbiz.de/10011753441
This paper investigates cross-sectoral productivity differentials in South African industry and their distributional … consequences. The analysis shows that typically, traded sectors have experienced low productivity growth over the past decade …, while skill intensive service sectors have had significant productivity growth. This is the inverse of the traditional …
Persistent link: https://www.econbiz.de/10012113686
While it is often argued that exchange rate depreciation has a beggar-thy-neighbour effect, in this paper, we investigate, whether exchange rate depreciation has a beggarthyself effect. Specifically, we explore the distributional consequences of Exchange rate movements. Using a heterogeneous...
Persistent link: https://www.econbiz.de/10014250367
While it is often argued that exchange rate depreciation has a beggar-thy-neighbour effect, in this paper, we investigate, whether exchange rate depreciation has a beggar-thyself effect. Specifically, we explore the distributional consequences of exchange rate movements. Using a heterogeneous...
Persistent link: https://www.econbiz.de/10014345255
We study the distribution of labor income during large devaluations. Across countries, inequality falls after large devaluations within the context of a surge in inflation and a fall and subsequent recovery of real labor income. To better understand inequality dynamics, we use a novel...
Persistent link: https://www.econbiz.de/10014544772