The Relative Price of Non-traded Goods in an Imperfectly Competitive Economy: Empirical Evidence for G7 Countries

In this paper, we consider the role of imperfect competition in explaining the relative price of non-traded to traded goods within the Balassa-Samuelson framework. Under imperfect competition in the two sectors, relative prices depend on both productivity differentials and mark-up differentials. We test this implication using a panel of sectors for the seven major OECD countries. The empirical evidence suggests that relative price movements are well explained by productivity and mark-up differentials. Unlike the original Balassa-Samuelson model, aggregate demand could affect the real exchange rate by changing the mark ups. The empirical results show that aggregate demand fluctuations lead to changes on the mark-ups

T and CPT in B-Factories

For the Bd meson system, CP, T and CPT indirect violation can be described using two physical parameters, epsilon and delta. The traditional observables based on flavour tag and used in the kaon system, are not helpful in the Bd case, and new asymmetries have to be introduced. Here such alternative observables, based on CP tag, are presented, together with the first estimation on the sensitivity that current asymmetric B-factories can achieve on their measurement.Comment: 7 pages, Talk given at the International Europhysics conference on HEP, HEP2001, July 2001, Budapest (Hungary