Wages and Inflation: An Investigation into Causality

Shannon, Russell; Wallace, Myles S.

doi:10.1080/01603477.1985.11489557

Cited by 10 publications

(2 citation statements)

References 14 publications

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“…Wage-price relationships have been investigated by Hall (1986), Shannon and Wallace (1986), Thury (1990), Monfort, Rabemanjara (1990), Jacobsson and Ohlsson (1991) and Petrovic (1991). The results of these investigations, and also the results of our preliminary computations, indicate the nonstationarity of wage and price series.…”

Section: Introductionmentioning

confidence: 99%

Specification of dynamic wage-price relations in Poland (1980?1991)

Blangiewicz

Bołt

1993

Econ Plann

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This paper focuses on the analysis of wage-price relationships during the period 1980-1991 in Poland. The dynamics of wage and price series under radical structural changes are examined, as well as the impact of earlier sharp price increases. The process of wages-toprices adjustment both in the long-and short-term is analysed. The hypothesis that the introduction of economic reform (at the beginning of 1990) would result in a tendency towards the stabilization of real wages is investigated. This is done through integration and cointegration analysis of wage and price series with special attention being paid to the problems arising from the •(2) character of the variables investigated. The concept of polynomial cointegration is applied to formulate error correction terms for the short-run model of wages. The computations have been made using quarterly data. The results reflect an inhomogeneity of the period investigated, especially the effects of the introduction of economic reform at the beginning of 1990. The nonstationarity of real wages is confirmed, but not their tendency towards stabilization.

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Section: Introductionmentioning

confidence: 99%

Specification of dynamic wage-price relations in Poland (1980?1991)

Blangiewicz

Bołt

1993

Econ Plann

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“…Interest rates, however, did play a strong role in the behavior of prices although not for wages. Shannon and Wallace (1986) adjusted these early studies on two levels. First, they chose unit labor costs to control for wage increases associated with productivity gains, which would not be expected to be inflationary.…”

Section: Introductionmentioning

confidence: 99%

The Dynamic Behavior of Wages and Prices: Cointegration Tests within a Large Macroeconomic System

Schmidt

2000

Southern Economic Journal

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The dynamic relationship between wages and prices has long held a central place within the economic literature. Most macroeconomic models make assumptions as to the causal relationship between the two variables. Unfortunately, empirical investigations have produced widely divergent results. In particular, the present paper examines the results of time‐series studies and argues that the lack of a consensus is due to improperly specified models. Once the wage‐price relationship is embedded within a multiple vector system, identification of a wage‐price cointegrating relationship is significantly improved. In addition, the increased efficiency yields evidence in favor of the dual feedback between wages and prices.

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The behavior of the stock market in a developing economy

Darrat

Mukherjee

1986

Economics Letters

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Wages and Inflation: An Investigation into Causality

Cited by 10 publications

References 14 publications

Specification of dynamic wage-price relations in Poland (1980?1991)

Specification of dynamic wage-price relations in Poland (1980?1991)

The Dynamic Behavior of Wages and Prices: Cointegration Tests within a Large Macroeconomic System

The behavior of the stock market in a developing economy

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