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 …

This study evaluates the individual roles of monetary and productivity shocks in real exchange rate fluctuations under … suggests that common-trend innovations are ascribed mostly to productivity shocks, whereas transitory innovations are governed … by monetary shocks. The allowance for productivity shocks, however, appears insufficient to fully explain the high …

domestic labor force and intersectoral labor mobility. We propose a contrasting theory of the “rich neighborhood effect” (RNE …). It is a more general theory because it explicitly allows for domestic labor force heterogeneity and because it is …

, leading to a negative relationship between the productivity in the tradable sector and the real exchange rate. In a small open …. Non-tradable services are produced with low-skilled labor only. A rise in the productivity of capital has two effects: (1 …

-specific productivity shocks generate business cycles that are highly correlated internationally. The model assumes recursive intertemporal … trade response to country-specific shocks. Hence, a productivity (and GDP) increase in a given country triggers a strong …

-specific productivity shocks generate business cycles that are highly correlated internationally. The model assumes recursive intertemporal … trade response to country-specific shocks. Hence, a productivity (and GDP) increase in a given country triggers a strong …