Can you think of any forces that might help bring about long-run PPP for nontradable goods? (It

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Can you think of any forces that might help bring about long-run PPP for nontradable goods? (It will help a bit here if you have understood the discussion in Chapter 5 of factor-price equalization.)

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International Economics Theory and Policy

ISBN: 978-0273754206

9th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

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Question Posted: Oct 24, 2012 11:45 PM

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Can you think of any forces that might help bring about long-run PPP for nontradable goods? (It

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PPP for nontradables would arise if technologies were ...View the full answer

International Economics Theory and Policy

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