The Price-Wage Mechanism in Poland: An Endogenous Switching Model |
| |
| Authors: | Jacek Osiewalski and Aleksander Welfe |
| |
| Affiliation: | (1) Department of Econometrics, Academy of Economics, ul. Rakowicka 27, 31-510 Kraków, Poland;(2) Institute of Econometrics and Statistics, Department of Forecasts and Simulation Analyses, University of Lódź, ul. Rewolucji 1905 r. 41, 90-214 Lódź, Poland |
| |
| Abstract: | This paper proposes a two-equation price-wage model that enables to test whether the inflationary pressure on wage rate is only present when the rate of inflation is greater than some threshold value. Since the likelihood function for this model is very nonstandard, we develop a small-sample Bayesian approach to estimate its parameters. Our empirical results for Poland, 1962–1993, give support to the hypothesis of the price- wage spiral with a positive threshold value of inflation. This revised version was published online in July 2006 with corrections to the Cover Date. |
| |
| Keywords: | |
| 本文献已被 SpringerLink 等数据库收录！ |
|
