Balassa-Samuelson effect

The Balassa-Samuelson effect is either of two related things:

History

The Balassa-Samuelson effect model was developed in 1964 by both Bela Balassa & Paul Samuelson, working independently.

Related Topics:
1964 - Bela Balassa - Paul Samuelson

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It is surprising that both of these economists should have completed their models separately & simultaneously (submitting them to different economic journals) because the outlines of the explanation had been described twenty-five years earlier by Roy Forbes Harrod in "International Economics".

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Partly because empirical findings have been mixed, and partly to differentiate the model from its conclusion, modern papers tend to refer to the "Balassa-Samuelson hypothesis", rather than the "Balassa-Samuelson effect". (See for instance: "A panel data analysis of the Balassa-Samuelson hypothesis", referred to above.)

Related Topics:
Empirical - Hypothesis

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