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                                       Details for article 7 of 16 found articles
 
 
  Inflation divergence in the euro area: the Balassa-Samuelson effect
 
 
Title: Inflation divergence in the euro area: the Balassa-Samuelson effect
Author: Katsimi, M.
Appeared in: Applied economics letters
Paging: Volume 11 (2004) nr. 5 pages 329-332
Year: 2004-04-15
Contents: This study estimates the Balassa-Samuelson effect for 7 EU countries. According to this effect, inflation differential between the tradable and the non-tradable sector can be attributed to unbalanced productivity growth between the two sectors. For the euro area this implies that countries with higher relative productivity growth in the tradable sector will suffer from higher inflation. We test the Balassa-Samuelson effect by using cointegration techniques. The empirical analysis supports the existence of a Balassa-Samuelson effect for 6 of the sample countries.
Publisher: Routledge
Source file: Elektronische Wetenschappelijke Tijdschriften
 
 

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