The relative price of non-traded goods under imperfect competition

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 these two sectors, relative prices depend on both productivity and mark-up differentials. We test this hypothesis using a panel of sectors for 12 OECD countries. The empirical evidence suggests that relative price movements are well explained by productivity and mark-up differentials.This study is partly funded by the Galician government under grants INCITE09201042PR and MTM2008-03010

The relative price of non-traded goods under imperfect competition

This article is available open access through the publisher’s website. Copyright @ 2012 The Department of Economics, University of Oxford.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 these two sectors, relative prices depend on both productivity and mark-up differentials. We test this hypothesis using a panel of sectors for 12 OECD countries. The empirical evidence suggests that relative price movements are well explained by productivity and mark-up differentials.The Galician governmen

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

Phase Transitions in Confined Antiferromagnets

Confinement effects on the phase transitions in antiferromagnets are studied as a function of the surface coupling v and the surface field h for bcc(110) films. Unusual topologies for the phase diagram are attained for particular combinations of v and h. It is shown that some of the characteristics of the finite-temperature behavior of the system are driven by its low-temperature properties and consequently can be explained in terms of a ground-state analysis. Cluster variation free energies are used for the investigation of the finite temperature behavior.Comment: 4 pages, 2 figures, Conference proceedings (SLAFES-XV), Phys. Stat. Sol.(b), in pres