Product Variety and Real Exchange Rates: The Balassa-Samuelson Model Reconsidered

Journal of Economics/ Zeitschrift fur Nationalokonomie

Volumn 79, Issue 1, 2003, Pages 41-60

  Unayama, Takashi ^a  

^a KEIO UNIVERSITY   (Japan)

Author keywords

Product variety; Productivity; Real exchange rates

Indexed keywords

EID: 0344629678     PISSN: 09318658     EISSN: None     Source Type: Journal    
DOI: 10.1007/s00712-002-0590-5     Document Type: Article

References (24)

1. Balassa, B. (1964): "The Purchasing Power Parity Doctrine: A Reappraisal." Journal of Political Economy 72: 584-596.
2. Bergstrand, J. (1991): "The Structural Determinants of Real Exchange Rates and National Price Levels." American Economic Review 81: 325-334.
3. Canzoneri, M. B., Cumby, R. E., and Diba, B. (1999): "Relative Labor Productivity and the Real Exchange Rate in Long-run: Evidence for a Panel of OECD Countries." Journal of International Economics 47: 245-266.
4. Chari, V. V., Kehoe, P. J., and McGrattan, E. R. (2001): "Can Sticky Price Models Generate Volatile and Persistent Real Exchange Rates?" Staff Report of Federal Reserve Bank of Minneapolis 277.
5. De Gregorio, J., Giovannini, A., and Wolf, H. (1994): "International Evidence on Tradables and Nontradables Inflation." European Economic Review 38: 1225-1244.
6. De Gregorio, J., and Wolf, H. (1994): "Terms of Trade, Productivity, and the Real Exchange Rate." NBER Working paper 4807.
7. De Gregorio, J., Wolf, H., and Krueger, T. H. (1994): "The Behavior of Non-tradable Goods Prices in Europe: Evidence and Interpretation." Review of International Economics 2: 284-305.
8. Dixit, A. K., and Stiglitz, J. (1977): "Monopolistic Competition and Optimum Product Diversity." American Economic Review 67: 297-308.
9. Dornbusch, R., Fischer, S., and Samuelson, P. A. (1977): "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods." American Economic Review 67: 823-839.
10. Engel, S. (1993): "Exchange Rates and Relative Prices: An Empirical Investigation." Journal of Monetary Economics 32: 32-50.
11. Engel, S. (1999): "Accounting for U.S. Real Exchange Rate Changes." Journal of Political Economy 107: 507-538.
12. Ethier, W. J. (1982): "National and International Returns to Scale in the Modern Theory of International Trade." American Economic Review 72: 389-405.
13. Grossman, G., and Helpman, E. (1991): Innovation and Growth in Global Economy. Cambridge, Mass.: MIT Press.
14. Helpman, E. (1998): General Purpose Technologies and Economic Growth. Cambridge, Mass.: MIT Press.
15. Hsieh, D. A. (1982): "The Determination of The Real Exchange Rate: The Productivity Approach." Journal of International Economic 12: 355-362.
16. Ito, T., Isard, P., and Symansky, S. (1999): "Economic Growth and Real Exchange Rate: An Overview of the Balassa-Samuelson Hypothesis in Asia." In Changes in Exchange Rates in Rapidly Developing Countries, edited by Ito, T., and Kruger, A. O. Chicago: The University of Chicago Press, pp. 109-128.
17. Lucas, R. E., Jr. (1982): "Interest Rates and Currency Prices in a Two-country World." Journal of Monetary Economics 10: 335-359.
18. Marston, R. C. (1990): "Systematic Movements in Real Exchange Rates in the G-5: Evidence on the Integration and External Markets." Journal of Banking and Finance 14: 1023-1044.
19. Romer, P. M. (1987): "Growth Based on Increasing Returns Due to Specialization." American Economic Review 77: 56-62.
20. Samuelson, P. A. (1964): "Theoretical Notes on Trade Problems. " Review of Economics and Statistics 46: 145-154.
21. Stockman, A. C. (1980): "A Theory of Exchange Rate Determination." Journal of Political Economy 88: 673-698.
22. Taylor, M. P. (1995): "The Economics of Exchange Rates." Journal of Economic Literature 103: 13-47.
23. Yoshikawa, H. (1990): "On the Equilibrium Yen-Dollar Rate." American Economic Review 80: 576-583.
24. Yanagawa, N. (1996): "Economic Development in a World with Many Countries." Journal of Development Economics 49: 271-288.