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Differences between Inequalities and Unequal Exchange: Comments on the Papers by Chaves and Köhler

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  • Raffer, Kunibert

Abstract

Köhler's critique of global wages, where he presents the concept of productivity with great clarity, combines very well with Chaves' presentation of Köhler's model of Unequal Exchange (UE). A brief and solid common position emerges. As I wrote that "the dimension of non-equivalence in a strict, logical sense" can only be shown by comparing real wages, I fully second Köhler's use of Purchase Power Parity (PPP)-data. In the 1980s, I explicitly referred to the research on PPP comparisons. Therefore I am glad he taps the progress made by PPP-research. Nevertheless, Köhler's model does not explain UE.

Suggested Citation

  • Raffer, Kunibert, 2006. "Differences between Inequalities and Unequal Exchange: Comments on the Papers by Chaves and Köhler," Entelequia. Revista Interdisciplinar, Entelequia y Grupo Eumed.net (Universidad de Málaga), issue 2, pages 197-200, Fall.
  • Handle: RePEc:erv:ancoec:y:2006:i:2:p:197-200
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    Cited by:

    1. Andrea Ricci, 2016. "Unequal Exchange in International Trade:A General Model," Working Papers 1605, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2016.

    More about this item

    Keywords

    Unequal Exchange; Purchase Power Parity; Exchange Rates;

    JEL classification:

    • B49 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Other
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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