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Relative Prices, Capital Movements, and Sectoral Technical Change: Theory and an Empirical Test

In: Structural Adjustment in Developed Open Economies

Author

Listed:
  • John S. Chipman

    (University of Minnesota)

Abstract

This paper constitutes an initial attempt to sort out and assess, within a neo-classical general-equilibrium framework, the relative and absolute importance of three separate potential influences on domestic sectoral-prices within a country: (1) external prices, (2) capital movements, and (3) technological change. Monthly data for West Germany and Sweden are used, since these are among the few countries for which price-index series exist for imports and exports, classified consistently with the price-index series for commodities sold on the domestic market.2

Suggested Citation

  • John S. Chipman, 1985. "Relative Prices, Capital Movements, and Sectoral Technical Change: Theory and an Empirical Test," International Economic Association Series, in: Karl Jungenfelt & Douglas Hague (ed.), Structural Adjustment in Developed Open Economies, chapter 13, pages 395-465, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-17919-0_13
    DOI: 10.1007/978-1-349-17919-0_13
    as

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