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Employment, output and political business cycle effects in the Greek non-tradable sector

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  • Costas Milas

Abstract

Starting from a theoretical model with traded and non-traded goods, a long-run labour demand equation is identifed, with employment being proportional to relative output and prices. Using Greek data, the model supports weak exogeneity of relative prices and fiscal expansion with respect to the long-run parameters in the cointegrating space. It also highlights structural rigidities in the functioning of the Greek labour market. Political business cycle and partisan effects are shown to affect the short-run employment decisions.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 32 (2000)
Issue (Month): 2 ()
Pages: 123-133

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Handle: RePEc:taf:applec:v:32:y:2000:i:2:p:123-133

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Cited by:
  1. Sahin, Afsin & Tansel, Aysit & Berument, Hakan, 2013. "Output-Employment Relationship across Sectors: A Long- versus Short-Run Perspective," IZA Discussion Papers 7599, Institute for the Study of Labor (IZA).
  2. Yi-Hsien Wang & Chung-Chu Chuang, 2009. "Selecting the portfolio investment strategy under political structure change in United States," Quality & Quantity: International Journal of Methodology, Springer, vol. 43(5), pages 845-854, September.
  3. Chin-Tsai Lin & Yi-Hsien Wang, 2005. "An Analysis of Political Changes on Nikkei 225 Stock Returns and Volatilities," Annals of Economics and Finance, Society for AEF, vol. 6(1), pages 169-183, May.

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