The Behavior of Nontradable Goods Prices in Europe: Evidence and Interpretation
Summary:
This paper examines the evolution of the relative price between tradable and nontradable goods in a group of European countries. A model of an open economy is used to analyze different factors that can account for an increase in the relative price of nontradable goods. These factors are: (a) faster technological progress in the tradable goods sector; (b) demand shifts toward nontradable goods; and (c) real wage pressures. The relevance of these factors is analyzed empirically for France, Germany, Italy, Spain and the United Kingdom.
Series:
Working Paper No. 1993/045
Subject:
Foreign exchange Labor Labor demand Labor productivity Production Real exchange rates Real wages Total factor productivity
English
Publication Date:
May 1, 1993
ISBN/ISSN:
9781451974263/1018-5941
Stock No:
WPIEA0451993
Pages:
62
Please address any questions about this title to publications@imf.org