Real exchange rates and sectoral productivity in the Eurozone

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dc.contributor.authorBerka M
dc.contributor.authorDevereux M
dc.contributor.authorEngel C
dc.date.issued2018-06-01
dc.description.abstractWe investigate the link between real exchange rates and sectoral total factor productivity measures for countries in the Eurozone. Real exchange rate patterns quite closely accord with an amended Balassa-Samuelson interpretation both in the cross-section and time series. We use a sticky price dynamic general equilibrium model to generate a cross-section and time series of real exchange rates that can be compared to the data. Under the assumption of a common currency, the model simulations closely accord with the empirical estimates for the Eurozone. Our findings contrast with previous studies that have found little relationship between productivity levels and the real exchange rate among high-income countries, but those studies have included country pairs which have a floating nominal exchange rate.
dc.format.extent1543 - 1581
dc.identifierhttp://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000434670500009&DestLinkType=FullRecord&DestApp=ALL_WOS&UsrCustomerID=c5bb3b2499afac691c2e3c1a83ef6fef
dc.identifier.citationAMERICAN ECONOMIC REVIEW, 2018, 108 (6), pp. 1543 - 1581
dc.identifier.doi10.1257/aer.20151045
dc.identifier.eissn1944-7981
dc.identifier.elements-id371498
dc.identifier.harvestedMassey_Dark
dc.identifier.issn0002-8282
dc.relation.isPartOfAMERICAN ECONOMIC REVIEW
dc.relation.urihttp://abfer.org/docs/2014/track1/real-exchange-rates-and-sectoral-productivity-in-the-eurozone.pdf
dc.subject.anzsrc14 Economics
dc.subject.anzsrc15 Commerce, Management, Tourism and Services
dc.titleReal exchange rates and sectoral productivity in the Eurozone
dc.typeconference
pubs.issue6
pubs.notesNot known
pubs.organisational-group/Massey University
pubs.organisational-group/Massey University/Massey Business School
pubs.organisational-group/Massey University/Massey Business School/School of Economics and Finance
pubs.publication-statusPublished
pubs.volume108
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