We reappraise the relationship between productivity and equilibrium real exchange rates using a panel estimation … role of non-traded, as well as traded, sector productivity shocks in exchange rate determination. We find evidence of … significant correlation between real exchange rates and productivity differentials in both sectors. But our finding of a …

persistence typically proceed along two distinct paths, resorting either to the presence of real shocks such as productivity … rates. -- EPSTAR ; exchange rate ; PPP ; Balassa-Samuelson ; productivity …

productivity gains on both the Balassa-Samuelson effect and the behaviour of the tradable real exchange rate is especially assessed … predicted by theory. Comparing in-sample and out-of-sample estimates (in terms of the country coverage) of equilibrium exchange …

country's real exchange rate to various shocks is derived in a simple model. It is shown that productivity shocks work not …

country's real exchange rate to various shocks is derived in a simple model. It is shown that productivity shocks work not …

1970 to 2008 and compare three different datasets on sectoral productivity, including a newly constructed database on total … factor productivity. Overall, our DOLS estimation results do not support the BS hypothesis. For the last two decades, we find … a very robust negative relationship between the productivity in the tradable sector and the equilibrium real exchange …

prices as a result of decreased trade costs. A decrease in trade costs enables lower-productivity firms to begin exporting … that low-productivity firms have more volatile markups …

The paper explores the optimal monetary policy reaction to productivity shocks in an open economy. Whereas earlier …

positive price-income association is attributable, at least partly, to the Balassa-Samuelson productivity differential effect …