The Price-Wage Mechanism in Poland: An Endogenous Switching Model
AbstractThis 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. Copyright Kluwer Academic Publishers 1997
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Bibliographic InfoArticle provided by Springer in its journal Economics of Planning.
Volume (Year): 30 (1997)
Issue (Month): 2 (May)
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Web page: http://www.springerlink.com/link.asp?id=113294
Other versions of this item:
- Osiewalski, Jacek & Welfe, Aleksander, 1997. " The Price-Wage Mechanism in Poland: An Endogenous Switching Model," Economic Change and Restructuring, Springer, vol. 30(2-3), pages 205-20.
- Jacek Osiewalski & Aleksander Welfe, . "The Price-Wage Mechanism in Poland: An Endogenous Switching Model," Ace Project Memoranda 96/2, Department of Economics, University of Leicester.
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