This paper presents a flexible-price small open economy model with a "peso problem" in productivity states. Agents … rationally adjust their beliefs about future productivity growth after the arrival of news. A downward revision of expectations … actual change in productivity growth to generate large fluctuations. Quantitatively, the model goes a long way in matching …

According to the Balassa-Samuelson effect, productivity gains in the domestic tradable sector raise the relative price …-tradables but is more controversial about real exchange rate appreciation in response to productivity gains in tradables …

Productivity growth has flat-lined in most economies despite rapid advances in technology. Economists suggest competing … and increased productivity means a productivity surge is just around the corner. The paper explores the implications of … alternative productivity growth scenarios for the global economy, particularly for growth, labor markets and the flows of trade …

major financial or economic crash. With a shrinking labor force and declining efficiency of investment, raising productivity …

more than a quarter of their annual pre-liberalization salary. The increase in the growth rate of labor productivity in the …

major financial or economic crash. With a shrinking labor force and declining efficiency of investment, raising productivity …

face more intense competition, is it possible that such competition spurs firms to improve productivity? To answer this … firms to improve productivity by adopting new technologies. In addition, the model predicts that during appreciations there … will be a positive relation between market concentration and improvements in productivity for industries highly exposed to …