Real Exchange Rates and Sectoral Productivity in the Eurozone

• 成果类型: Article
• 署名作者: Berka, Martin; Devereux, Michael B.; Engel, Charles
• 署名单位: Massey University; University of British Columbia; University of Wisconsin System; University of Wisconsin Madison
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20151045
• 发表日期: 2018
• 页码: 1543-1581
• 关键词: STICKY PRICE MODELS; fiscal-policy; Labor wedge; US; fluctuations; equilibrium; persistence; inflation; BEHAVIOR; COSTS

摘要

We investigate the link between real exchange rates and sectoral TFP for eurozone countries. We show that real exchange rate variation, both cross-country and time-series, closely accords with an amended Balassa-Samuelson interpretation, incorporating sectoral productivity shocks and a labor market wedge. We construct a DSGE model to generate a cross section and time series of real exchange rates to compare to data. Estimates from simulated regressions are very similar to estimates for eumzone data. Our findings contrast with previous studies that have found little relationship between productivity and real exchange rates among high-income countries that have floating nominal exchange rates.