Abstract: There is surprisingly little empirical research on whether Balassa-Samuelson effects can explain the long-run behavior of real exchange rates in developing countries. This paper presents new ...

An important decision for the Central and Eastern European countries seeking membership in the European Union is choosing the most appropriate exchange rate regime. Experience has shown that many ...

Long-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 ...

I qualitatively and quantitatively revisit the Balassa–Samuelson (BS) mechanism in the long run. Traditional panel regression specifications without time fixed effects are fragile, but adding time ...