NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Working Papers by Martin Berka

Contact and additional information for this authorAll NBER papers and publicationsNBER Working Papers only

Working Papers

September 2014Real Exchange Rates and Sectoral Productivity in the Eurozone
with Michael B. Devereux, Charles Engel: w20510
We investigate the link between real exchange rates and sectoral total factor productivity measures for countries in the Eurozone. Real exchange rate patterns closely accord with an amended Balassa-Samuelson interpretation, both in cross-section and time series. We construct a sticky price dynamic general equilibrium model to generate a cross-section and time series of real exchange rates that can be directly compared to the data. Under the assumption of a common currency, estimates from simulated regressions are very similar to the empirical estimates for the Eurozone. Our findings contrast with previous studies that have found little relationship between productivity levels and the real exchange rate among high-income countries, but those studies have included country pairs which have a ...
June 2011Price Setting in a Leading Swiss Online Supermarket
with Michael B. Devereux, Thomas Rudolph: w17126
We study a newly released data set of scanner prices for food products in a large Swiss online supermarket. We find that average prices change about every two months, but when we exclude temporary sales, prices are extremely sticky, changing on average once every three years. Non-sale price behavior is broadly consistent with menu cost models of sticky prices. When we focus specifically on the behavior of sale prices, however, we find that the characteristics of price adjustment seems to be substantially at odds with standard theory.
February 2010What Determines European Real Exchange Rates?
with Michael B. Devereux: w15753
We study a newly constructed panel data set of relative prices of a large number of consumer goods among 31 European countries. We find that there is a substantial and non-diminishing deviation from PPP at all levels of aggregation, even among eurozone members. However, real exchange rates are very closely tied to relative GDP per capita within Europe, both across countries and over time. This relationship is highly robust at all levels of aggregation. We construct a simple two-sector endowment economy model of real exchange rate determination. Simulating the model using the historical relative GDP per capita for each country, we find that for most (but not all) countries there is a very close fit between the actual and simulated real exchange rate.

Published: Trends in European Real Exchange Rates. (with Martin Berka) Economic Policy, 28, 193-242

December 2009The Consumption Terms of Trade and Commodity Prices
with Mario J. Crucini: w15580
The national terms of trade, defined as the ratio of an export price index to an import price index has been extensively studied empirically. In this paper we construct an alternative measure, which we call the consumption terms of trade. This measure recognizes the fact that consumers and firms face different prices for the same items and consume different items. Using micro-data from the Economist Intelligence Unit at the retail level, we conduct a forensic analysis of the variation of the terms of trade of 38 countries. Using a novel variance decomposition method, we find that the bulk of terms of trade variation is accounted for by oil, automobiles and medicine. The other goods in our construct tend to exhibit balanced trade, providing a natural hedge against world price fluctuations. ...

Published: The Consumption Terms of Trade and Commodity Prices, Martin Berka, Mario J. Crucini. in Commodity Prices and Markets, East Asia Seminar on Economics, Volume 20, Ito and Rose. 2011

Contact and additional information for this authorAll NBER papers and publicationsNBER Working Papers only

 
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