Download or read book A Phillips Curve Interpretation of Error Correction Models of the Wage and Price Dynamics written by Søren Harck and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents a model of employment, distribution and inflation in which a modern error correction specification of the nominal wage and price dynamics (referring to claims on income by workers and firms) occupies a prominent role. It is brought out, explicitly, how this rather typical error-correction setting, which actually seems to capture the wage and price dynamics of many large-scale econometric models quite well, is fully compatible with the notion of an old-fashioned Phillips curve with finite slope. It is shown how the steady-state impact of various shocks to the model can be profitably conceived of and interpreted in terms of (and to some extent even calculated by means of) this long-run Phillips curve.
Download or read book Working Paper written by Søren H. Harck and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book On Error Correction Models written by George Alogoskoufis and published by . This book was released on 1990 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Macroeconomics and the History of Economic Thought written by H.M. Krämer and published by Routledge. This book was released on 2012-03-29 with total page 558 pages. Available in PDF, EPUB and Kindle. Book excerpt: The essays in this Festschrift have been chosen to honour Harald Hagemann and his scientific work. They reflect his main contributions to economic research and his major fields of interest. The essays in the first part deal with various aspects within the history of economic thought. The second part is about the current state of macroeconomics. The essays in the third part of the book cover topics on economic growth and structural dynamics.
Download or read book Econometric Wage and Price Models Assessing the Impact of the Economic Stabilization Program written by A. Bradley Askin and published by . This book was released on 1974 with total page 190 pages. Available in PDF, EPUB and Kindle. Book excerpt: Monograph on the use of econometric models for mathematical analysis of wages and prices in the USA - analyses the inflation process, etc., and includes an evaluation of the economic stabilization programme (incomes policy) based on extensions of three models. Graphs and references.
Download or read book Quantitative and Empirical Analysis of Nonlinear Dynamic Macromodels written by Carl Chiarella and published by Emerald Group Publishing. This book was released on 2006-05-30 with total page 563 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book represents an ongoing research agenda the aim of which is to contribute to the Keynesian paradigm in macroeconomics. It examines the Dynamic General Equilibrium (DGE) model, the assumption of intertemporal optimizing behavior of economic agents, competitive markets and price mediated market clearing through flexible wages and prices.
Download or read book European Wage Dynamics and Spillovers written by Yuanyan Sophia Zhang and published by International Monetary Fund. This book was released on 2019-07-19 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: Wage rises have remained stubbornly low in advanced Europe in recent years, but, at the same time, newer EU members are experiencing rapid wage acceleration. This paper investigates the drivers of this wage divergence. Econometric analysis using error correction models suggests that wage growth responds more quickly to changes in unemployment in the newer EU members than in advanced Europe, where wages are more closely related to inflation and inflation expectations in the short run, implying greater inertia in nominal wage rises in advanced Europe. In the years after the global crisis, this inertia contributed to the build up of a real wage overhang relative to sharply slowing labor productivity, which subsequently dragged on nominal wage rises even as unemployment began to decline. Spillovers of subdued wage growth between euro area countries also weighed on wage rises in advanced Europe.
Download or read book The New Keynesian Phillips Curve sticky Price wage Model in the U S and Japan written by Masaaki Suzuki and published by . This book was released on 2006 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book German and American Wage and Price Dynamics written by Wolfgang Franz and published by . This book was released on 1993 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt: The evolution of unemployment in West Germany and the U. S. stands in sharp contrast, with German unemployment much lower from 1960 to the early 19705 but substantially higher from 1984 to 1988. This paper provides a framework for examining the relationship between inflation and unemployment that sheds light on these developments. The theoretical section develops a new nonstructural model of wage and Price adjustment that integrates severa! concepts that have often been treated separately, including Phillips curve "level effects," hysteresis "change effects," the error-correction mechanism, and the role of changes in labor's share that act as a supply shock. The empirical analysis reaches rwo striking conclusions. First, during 1973-90coefficients in our German wage equations arc remarkably similar to those in the U.S., with almost identical estimates of the Phillips curve slope, of the hysteresis effect, and of the NAIRU. The two countries also share similar inflation behavior, in that inflation depends more closely on the capacity utilization rate than on the unemployment rate, The big difference berween the two countries is that there is no feedback from wages to prices in Germany, and so high unemployment does not put downward pressure on the inflation rate. During the 19705 and 19805 in Germany there emerged a growing mismatch between the labor market and industrial capacity, so that the unemployment rate consistent with the mean (constant-inflation) utilization rate ("MURU") increased sharply, while in the U. S. the MURU was relatively stable. The German utilization rate in late 1990was about 90 percent, considerably higher than the estimated MURU of 85 percent. Accordingly, we conclude that the Bundesbank was appropriately concerned about the acceleration of inflation implied by the tight product market of that period.
Download or read book The Econometrics of Macroeconomic Modelling written by Gunnar Bårdsen and published by Oxford University Press on Demand. This book was released on 2005 with total page 338 pages. Available in PDF, EPUB and Kindle. Book excerpt: Macroeconometric models, in many ways the flagships of the economist's profession in the 1960s, came under increasing attack from both theoretical economist and practitioners in the late 1970s. Critics referred to their lack of microeconomic theoretical foundations, ad hoc models of expectations, lack of identification, neglect of dynamics and non-stationarity, and poor forecasting properties. By the start of the 1990s, the status of macroeconometric models had declined markedly, and hadfallen completely out of, and with, academic economics. Nevertheless, unlike the dinosaurs to which they often have been likened, macroeconometric models have never completely disappeared from the scene. This book describes how and why the discipline of macroeconometric modelling continues to play a role for economic policymaking by adapting to changing demands, in response, for instance, to new policy regimes like inflation targeting. Model builders have adopted new insights from economic theory and taken advantage of the methodological and conceptual advances within time series econometrics over the last twenty years. The modelling of wages and prices takes a central part in the book as the authors interpret and evaluate the last forty years of international research experience in the light of the Norwegian 'main course' model of inflation in a small open economy. The preferred model is a dynamic model of incomplete competition, which is evaluated against alternatives as diverse as the Phillips curve, Nickell-Layard wage curves, the New Keynesian Phillips curve, and monetary inflation models on data from the Euro area, the UK, and Norway. The wage price core model is built into a small econometric model for Norway to analyse the transmission mechanism and to evaluate monetary policy rules. The final chapter explores the main sources of forecast failure likely to occur in a practical modelling situation, using the large-scale nodel RIMINI and the inflation models of earlier chapters as case studies.
Download or read book Phillips Curves Phillips Lines and the Unemplyment Costs of Overheating written by Mr.Peter B. Clark and published by International Monetary Fund. This book was released on 1997-02-01 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: Most empirical work on the U.S. Phillips curve has had a strong tendency to impose global linearity on the data. The basic objective of this paper is to reconsider the issue of nonlinearity and to underscore its importance for policymaking. After briefly reviewing the history of the Phillips curve and the basis for convexity, we derive it explicitly using standard models of wage and price determination. We provide some empirical estimates of Phillips curves and Phillips lines for the United States and use some illustrative simulations to contrast the policy implications of the two models.
Download or read book Productivity Growth Inflation and Unemployment written by Robert James Gordon and published by Cambridge University Press. This book was released on 2004 with total page 520 pages. Available in PDF, EPUB and Kindle. Book excerpt: Publisher Description
Download or read book Dissecting the Phillips Curve written by Jeffrey Ecker and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, the core objective was to analyze and break down the components of the Phillips Curve. By doing so, two questions could be answered: has the Phillips Curve gone dormant and if so, is a potential cause a breakdown of assumed causal links between wage inflation, unemployment, and price inflation. Imploring a variety of methodologies including vector error correction models, vector autoregressive models, and granger causality, this paper was able to examine each relation of the Phillips Curve and provide insight into the strength of its components. Specifically, the Wage Phillips Curve still shows a significant relationship between unemployment and wages, and there is also a significant, positive relationship between the inflations of prices and wages. However, there is little evidence that a relationship exists between price inflation and unemployment, demonstrating the weakness of the conceptual Phillips Curve.
Download or read book The Economics of Price and Wage Controls written by Karl Brunner and published by Amsterdam ; New York : North-Holland Publishing Company ; New York : sole distributors for the U.S.A. and Canada, American Elsevier Publishing Company. This book was released on 1976 with total page 346 pages. Available in PDF, EPUB and Kindle. Book excerpt: Compilation of conference papers on the economics of wage policy and price controls in the USA - refers to the economic implications and effects of controls, the impact of excess demand and wage-price controls on wage inflation in the UK, and the application of time series economic models to inflation and incomes policy, etc. Diagrams, graphs, references and statistical tables. Conference held in rochester 1973 November.
Download or read book The Econometrics of Macroeconomic Modelling written by Gunnar Bårdsen and published by OUP Oxford. This book was released on 2005-04-14 with total page 362 pages. Available in PDF, EPUB and Kindle. Book excerpt: Macroeconometric models, in many ways the flagships of the economist's profession in the 1960s, came under increasing attack from both theoretical economist and practitioners in the late 1970s. Critics referred to their lack of microeconomic theoretical foundations, ad hoc models of expectations, lack of identification, neglect of dynamics and non-stationarity, and poor forecasting properties. By the start of the 1990s, the status of macroeconometric models had declined markedly, and had fallen completely out of, and with, academic economics. Nevertheless, unlike the dinosaurs to which they often have been likened, macroeconometric models have never completely disappeared from the scene. This book describes how and why the discipline of macroeconometric modelling continues to play a role for economic policymaking by adapting to changing demands, in response, for instance, to new policy regimes like inflation targeting. Model builders have adopted new insights from economic theory and taken advantage of the methodological and conceptual advances within time series econometrics over the last twenty years. The modelling of wages and prices takes a central part in the book as the authors interpret and evaluate the last forty years of international research experience in the light of the Norwegian 'main course' model of inflation in a small open economy. The preferred model is a dynamic model of incomplete competition, which is evaluated against alternatives as diverse as the Phillips curve, Nickell-Layard wage curves, the New Keynesian Phillips curve, and monetary inflation models on data from the Euro area, the UK, and Norway. The wage price core model is built into a small econometric model for Norway to analyse the transmission mechanism and to evaluate monetary policy rules. The final chapter explores the main sources of forecast failure likely to occur in a practical modelling situation, using the large-scale nodel RIMINI and the inflation models of earlier chapters as case studies.
Download or read book A W H Phillips Collected Works in Contemporary Perspective written by Alban William Housego Phillips and published by Cambridge University Press. This book was released on 2000-08-03 with total page 535 pages. Available in PDF, EPUB and Kindle. Book excerpt: Virtually all of contemporary macroeconomics is underpinned by a Phillips curve of one variety or another; yet most of this literature displays a curious neglect of the theoretical dynamic stabilisation perspective provided by A. W. H. Phillips. This 2000 volume collected for the first time the major work of one of the great economists, integrating Phillips's empirical work with his theoretical contribution. In addition to twelve substantive chapters, twenty-nine economists including Lawrence Klein, James Meade, Thomas Sargent, Peter Phillips, David Hendry, William Baumol, Richard Lipsey and Geoffrey Harcourt highlight and interpret Phillips's ongoing influence. This volume also contains six of Phillips's previously unpublished essays, four of which were thought to have been lost. The fifth such essay (Phillips's second empirical Phillips curve) was previously an informal working paper of which few copies circulated, and the sixth essay is a forerunner of the Lucas Critique written by Phillips shortly before his death.
Download or read book Mathematical Economics and the Dynamics of Capitalism written by Peter Flaschel and published by Routledge. This book was released on 2016-04-01 with total page 385 pages. Available in PDF, EPUB and Kindle. Book excerpt: Richard Goodwin was a pioneer in the use of mathematical tools to understand the dynamics of capitalist economies. This book contains contributions which focus on the rigorous extension of Goodwin’s modelling of macro-dynamics and the micro-structures underlying them, and also research with a wider perspective related to Goodwin’s vision of an integrated Marx-Keynes-Schumpeter (M-K-S) system of the dynamics of capitalist economies. The variety of approaches in this book range from detailed business cycle analyses to Schumpeterian processes of creative destruction. They include thorough theoretical analysis of delayed dynamical systems. empirical studies of Goodwin’s classical growth cycle model and the integration of Keynesian aspects of effective demand and of financial mechanisms that impact the real macro-economy. micro-economic structural analysis. expectations driven aspects of micro-founded business cycle modelling
