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• W2168008582 abstract "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 in poorer countries. In this paper we re‐examine the P enn‐effect based on a new set of PPPs for industry output. These are estimated in an augmented G eary– K hamis approach using prices for final goods, exports, and imports. The resulting multilateral PPPs cover 35 industries in 42 countries for the year 2005. We find large variation in relative prices of various services industries. In particular the P enn‐effect appears to be mostly due to the rapidly rising output prices of non‐market services. This seems related mainly to the high labor intensity of that sector." @default.
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• W2168008582 date "2012-12-20" @default.
• W2168008582 modified "2023-10-17" @default.
• W2168008582 title "The Relative Price of Services" @default.
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• W2168008582 doi "https://doi.org/10.1111/roiw.12012" @default.
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