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This paper examines the evolution of the relative price between tradable and nontradable goods in a group of European … price of nontradable goods. These factors are: (a) faster technological progress in the tradable goods sector; (b) demand …
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productivity. It is found that changes in the relative price of tradable goods in terms of nontradables account for a sizable … behavior of the relative price of tradable goods, especially in the long run. There is also some evidence that the EMS has … extended on relative price behavior …
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