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BALASSA-SAMUELSON HYPOTHESIS [1 record]

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Record 1 2022-09-29

English

Subject field(s)
  • Econometrics
  • Economic Fluctuations
  • Production (Economics)
CONT

The PBH, which is also known as Balassa-Samuelson Hypothesis (BSH), simply suggests [that] a country with high productivity growth also experiences high wage growth, which causes a rise in prices and consequently, the real exchange rate appreciates.

OBS

Partly because empirical findings have been mixed, and partly to differentiate the model from its conclusion, modern papers tend to refer to the Balassa–Samuelson hypothesis, rather than the Balassa–Samuelson effect.

French

Domaine(s)
  • Économétrie
  • Fluctuations économiques
  • Production (Économie)

Spanish

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