01652cas a2200241 a 4500 AALejournalIMF003265 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451874686 1018-5941 BD-DhAAL BD-DhAAL Klyuev, Vladimir. Evolution of the Relative Price of Goods and Services in a Neoclassical Model of Capital Accumulation / Vladimir Klyuev. Washington, D.C. : International Monetary Fund, 2004. 1 online resource (18 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper provides an explanation for the secular increase in the price of services relative to that of manufactured goods that relies on capital accumulation rather than on an exogenous total factor productivity growth differential. The key assumptions of the two-sector, intertemporal optimizing model are relatively high capital intensity in the production of goods and limited cross-border capital mobility, allowing the interest rate to vary. With plausible parameterization, the model also predicts a decline in the employment share of the goods sector over time. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2004/207 Full text available on IMF http://elibrary.imf.org/view/journals/001/2004/207/001.2004.issue-207-en.xml IMF e-Library