Real Exchange Rates and Sectoral Productivity in the Eurozone

Show simple item record Berka, Martin en Devereux, MB en Engel, C en 2014-10-15T22:49:57Z en 2014-09-22 en
dc.identifier.citation 2014, Working Paper Series, (20510), 63 pp en
dc.identifier.uri en
dc.description.abstract We investigate the link between real exchange rates and sectoral total factor productivity measures for countries in the Eurozone. Real exchange rate patterns closely accord with an amended Balassa-Samuelson interpretation, both in cross-section and time series. We construct a sticky price dynamic general equilibrium model to generate a cross-section and time series of real exchange rates that can be directly compared to the data. Under the assumption of a common currency, estimates from simulated regressions are very similar to 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. en
dc.format.medium Working Paper en
dc.publisher National Bureau of Economic Research en
dc.rights Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher. en
dc.rights.uri en
dc.title Real Exchange Rates and Sectoral Productivity in the Eurozone en
dc.type Scholarly Text en
dc.identifier.doi 10.3386/w20510 en
pubs.issue 20510 en
dc.rights.holder Copyright: National Bureau of Economic Research en en
pubs.edition Working Paper Series en Cambridge, Massachusetts, USA en
pubs.publication-status Published en
dc.rights.accessrights en
pubs.elements-id 456870 en
dc.relation.isnodouble 36959 *
pubs.record-created-at-source-date 2014-09-23 en

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