18,246 research outputs found
The Harrod-Balassa-Samuelson Effect: A Survey of Empirical Evidence
No full textThe paper surveys empirical evidence on the Harrod-Balassa-Samuelson effect. The survey encompasses the published empirical work on the phenomenon since its (re)discovery in 1964. In total, 58 empirical papers are examined within a specialized analytical framework. The body of empirical evidence is synthesized through four major elements. The analysis starts with the ongoing controversy related to the name of the theory. This is followed by a presentation of the evolution of the theoretical and econometric model. It ends with an analysis of the results of the surveyed empirical studies. Results of the survey indicate that growing body of evidence definitely points towards professional rethinking about the significance of the Harrod-Balassa-Samuelson effect.Harrod Balassa Samuelson effect, real exchange rate, purchasing power parity, productivity
Taylor-and-Francis_Impact-Assessment-of-Earth-and-Environmental-Sciences-Research-Author-Survey_Raw-Data_Figshare
No full textAnonymized responses dataset from the Taylor & Francis Impact Assessment of Earth & Environmental Sciences Research: Author Survey.In Spring 2020, Taylor & Francis surveyed authors from across our Earth & Environmental Sciences portfolio.We investigated what benefits publishing in our journals could impart on both the research and on the authors following publication, and we looked at to what extent global challenges, such as those expressed by the UN Sustainable Development Goals (SDGs), were shaping researcher ambitions.</div
Taylor Times: April 4, 1997
No full textThe ways we lead; decisions we make – Bond issue to take place for construction – From the Office of the President – Author Peter Jacobi visits TUFW class – Faculty News In Brief – Department of Development plans first official Grandparents’ Day – Schedule of Events for Grandparents’ Day April 25, 1997 – Academic Web Resources – Retiree Focus – Personnel Office – Taylor Update – Seaman named new women’s tennis coachhttps://pillars.taylor.edu/taylor-times/1040/thumbnail.jp
Balassa-Samuelson, Product Differentiation and Transition
No full textRecent panel studies have found relatively high estimates for the elasticity of real exchange rates with respect to productivity measures in transition economies within Balassa-Samuelson frameworks. This contrasts with other findings reporting cross-section price-income elasticity estimates to depend positively on average income in the sample. This paper aims to reconcile both results by putting real exchange rate developments of transition economies in an international perspective. We illustrate the special status of these economies in a simple world-wide Balassa-Samuelson-type price-income benchmark relationship between a real exchange rate measure (Penn World Table comparative prices, i.e., exchange rate gaps) and PPP-adjusted per capita income. A pronounced undervaluation at the start of transition, followed by a strong appreciation results in normalisation towards the benchmark for Central and East European economies (CEEC) but not for the CIS. We then make an attempt at extending the simple price-income relationship to incorporate other real factors as well as reforms related to price deregulation. Our results imply that, when accounting for demand shifts, external liberalisation, and especially for reform effort, the price-income-elasticity for CEEC economies was not different from that of non-transition economies during the nineties.Balassa-Samuelson, transition
Can we identify Balassa-Samuelson effects with measures of product variety?
No full textThe Balassa-Samuelson hypothesis – i.e. that real exchange rates between each pair of countries increase with the tradables sector productivities ratio between these countries, and decrease with their non-tradables sector productivities ratio – has been one of the most prominent frameworks in open economy macroeconomics for more than forty years. However, empirical studies have often been unable to confirm it. We argue that this might at least in part be due to measurement errors leading to downward-biased estimates. We test the Balassa-Samuelson hypothesis with innovative trade-based vari-ety measures to differentiate between tradables and non-tradables sector productivities that do not suffer from such errors-in-variables. Using a pairwise regression approach, we find stable and very robust Balassa-Samuelson effects over all our specifications.Balassa-Samuelson, product variety, measurement errors, pairwise regressions
Taylor Times: March 16, 2001
No full textPresident appoints Ron Sutherland VP for business and finance – TSO hosts presidential interview – Our God supplies – Fee schedules for 2001-02 increase – Women’s Seminar offers workshops and opportunities – WBCL hosts Mid-Morning with Max Anders on the Upland campus – Musical ensembles use spring break to share Christ to a world in need – Tour Itineraries – Campus photographer wins two awards in competition – Getting to know YOU! – Meadors brings experience to soccer coach position – Employee Anniversaries – After 10 years of Taylor’s statistics Letarte announces retirement – Scams taking place on college campuses – Acclaimed author speaks to TUFW programs – Changes in health benefits effective next fiscal year – Suggestions for being good stewards with health benefits – Feet to Beat Diabetes walk scheduled – Taylor Update – Announcements – Thanksgivings – One minute wisdomhttps://pillars.taylor.edu/taylor-times/1031/thumbnail.jp
The Harrod-Balassa-Samuelson Hypothesis: Real Exchange Rates and their Long-Run Equilibrium
No full textFrictionless, perfectly competitive traded-goods markets justify thinking of purchasing power parity (PPP) as the main driver of exchange rates in the long-run. But differences in the traded/non-traded sectors of economies tend to be persistent and affect movements in local price levels in ways that upset the PPP balance (the underpinning of the Harrod-Balassa-Samuelson hypothesis, HBS). This paper uses panel-data techniques on a broad collection of countries to investigate the long-run properties of the PPP/HBS equilibrium using novel local projection methods for cointegrated systems. These semi-parametric methods isolate the long-run behavior of the data from contaminating factors such as frictions not explicitly modelled and thought to have effects only in the short-run. Absent the short-run effects, we find that the estimated speed of reversion to long-run equilibrium is much higher. In addition, the HBS effects means that the real exchange rate is converging not to a steady mean, but to a slowly to a moving target. The common failure to properly model this effect also biases the estimated speed of reversion downwards. Thus, the so-called "PPP puzzle" is not as bad as we thought.
Productivity, Tradability, and the Long-Run Price Puzzle
No full textLong-run cross-country price data exhibit a puzzle. Today, richer countries exhibit higher
price levels than poorer countries, a stylized fact usually attributed to the Balassa-
Samuelson effect. But looking back fifty years, this effect virtually disappears from the
data. What is often assumed to be a universal property is actually quite specific to recent
times, emerging a half century ago and growing steadily over time. What might
potentially explain this historical pattern? We develop an updated Balassa-Samuelson
model inspired by recent developments in trade theory, where a continuum of goods are
differentiated by productivity, and where tradability is endogenously determined. Firms
experiencing productivity gains are more likely to become tradable and crowd out firms
not experiencing productivity gains. As a result the usual Balassa-Samuelson
assumption—that productivity gains be concentrated in the traded goods sector—emerges
endogenously, and the Balassa-Samuelson effect on relative price levels likewise evolves
gradually over time.Balassa-Samuelson theory,
Can Balassa and Samuelson effect explain the international price disparity between low and high income countries?
No full textThis article assesses the Balassa and Samuelson effect which offers an explanation of the differences in international prices based on productivity disparity between tradables and nontradables. It argues that although the Balassa and Samuelson effect provides a reasonable explanation for the deviations in price levels between countries that export similar types of commodities, it is less compelling in terms of explaining the price differences between low and high income countries, as these countries typically export dissimilar types of commodities.Balassa and Samuelson effect, international price disparity
The Balassa-Samuelson model in general equilibrium with markup variations
No full textThis contribution embeds the Balassa-Samuelson hypothesis in a general equilibrium model that combines monopolistic competition and markup variations to examine the determinants of relative prices of nontradables. The model emphasizes the role of markup variations as an important aspect driving relative price movements. Variations in the markup makes fiscal policy non-neutral and provides a strong magnification mechanism for shocks to productivity. The empirical evidence of these predictions are examined by using a panel cointegration framework. On the whole, the econometric findings support theoretical implications, suggesting that our model is more closely in line with data relative to the supply-side Balassa-Samuelson framework that abstracts from variations in the degree of competition.Balassa-Samuelson effect, Monopolistic competition, Fiscal policy.
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