We study the business cycle properties of exchange rates and other macro-economic variables in a panel of developed and developing countries. We find substantial variation in the degree of co-movement of exchange rates with other macroeconomic variables across countries in our sample. Moreover,...

In this article, we document three remarkable facts about the distribution of output per worker (labor productivity) across countries between 1960 and 1996. First, there is a large disparity in labor productivity across countries in the world. Second, disparity has increased substantially since...

The relative price of services rises with development. A standard interpretation of this fact is that productivity differences across countries are larger in manufacturing than in services. The service sector comprises heterogeneous categories. We document that many disaggregated service...