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Journal of Economic Structures

The Official Journal of the Pan-Pacific Association of Input-Output Studies (PAPAIOS)

Table 11 The long-run effects of currency devaluation on the wage and profit rates; Greece and Italy

From: Wage versus currency devaluation, price pass-through and income distribution: a comparative input–output analysis of the Greek and Italian economies

 

Currency devaluation

ε = 30%

ε = 50%

Wage rate

Profit rate

Wage rate

Profit rate

Greece

0.003

(− 2.56)

68.4%

(− 0.82)

0.001

(− 3.57)

57.7%

(− 0.95)

Italy

0.006

(− 2.25)

42.1%

(− 0.97)

0.003

(− 2.86)

33.5%

(− 1.18)

  1. The figures in parentheses give the arc partial elasticities of the distributive variables with respect to the exchange rate
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