Data appendix
1) The series for GDP, Consumption Investment and net exports in table 3 are of annual frequency from 1970 to 2000 and are taken from the Penn World Tables.
2) Consumption de‡ators and exchange rates used to construct the data in table 1 as well as the terms of trade in table 3 are taken from Datasteam, are of annual frequency and span from 1970 - 2000.
4) The relative price of non-traded to traded goods in table 3 is de…ned as PPI/CPI taken from the IFS data base. Annual frequency from 1970 - 2000.
3) Data to construct the Solow residual are taken from the Groningen Growth and Development Centre, 60-Industry Database. This data is annual from 1979 to 2002. We construct the industry speci…c Solow residuals by taking a linear detrended of ln Ait= ln yit ln nit where i denotes the sectors. yit value added in sector i, nit is hours worked in sector i and = 0:67 as in the calibration of the model. Further details on which sectors we classed as traded and which as non-traded are available from the authors’by request.
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