We describe the theory and practice of real GDP comparisons across countries and over
time. Version 8 of the Penn World Table expands on previous versions in three respects …

Originally propounded by the sixteenth-century scholars of the University of Salamanca, the
concept of purchasing power parity (PPP) was revived in the interwar period in the context of …

First published in 2007. Exchange Rate Economics: Theories and Evidence is the second
edition of Floating Exchange Rates: Theories and Evidence, and builds on the successful …

Contrary to the claims made by neoliberal governments and mainstream academics, this
book argues that the huge increase in trade in recent decades has not made the world a …

Prices of GDP relative to the exchange rate increase with income per capita, which is known
as the P enn‐effect. This is generally attributed to services being cheaper relative to goods …

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 …

The characteristics that distinguish most develo** countries, compared to large
industrialized countries, include: greater exposure to supply shocks in general and trade …

There is surprisingly little empirical research on whether Balassa-Samuelson effects can
explain the long-run behavior of real exchange rates in develo** countries. This paper …

Frictions and perturbations may influence currency values in the short run, but it is generally
acknowledged that real‐exchange rates eventually settle toward equilibrium. The puzzle …

Historical data for over hundred years and 14 countries is used to estimate the long-run
effect of productivity on the real exchange rate. We find large variations in the productivity …