Resumen de The baumol-balassa-samuelson effect over one century in six eu countries and the united states
The aim of this paper is to test the Baumol-Balassa-Samuelson effect in seven countries over one century. The test accounts for an endogenous structural break in data and shows that the relative price of non-tradable goods shares a common stochastic trend withdifferences in productivity growth between the tradable and non-tradable sectors in six countries. The estimates of this paper suggest that differences in productivity growthbetween countries are an important determinant of the behaviour of real exchange rates.
