A Structural Investigation into the Price and Wage Dynamics in Hong Kong
AbstractThis paper estimates the degree of wage and price flexibility of the Hong Kong economy with the use of a stylised dynamic stochastic general equilibrium (DSGE) model developed for the Hong Kong economy. It also studies the factors contributing to deflation in Hong Kong following the Asian financial crisis (i.e. during the period from 1998 to 2003) and finds that declining import prices were the main culprit. Consistent with earlier studies on the subject and anecdotal evidence, wages and prices in Hong Kong are found to be (relatively) flexible.
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Bibliographic InfoPaper provided by Hong Kong Monetary Authority in its series Working Papers with number 0920.
Length: 17 pages
Date of creation: Dec 2009
Date of revision:
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Web page: http://www.info.gov.hk/hkma/
More information through EDIRC
DSGE; Bayesian Estimation; Nominal Rigidities;
Find related papers by JEL classification:
- F30 - International Economics - - International Finance - - - General
- G01 - Financial Economics - - General - - - Financial Crises
- G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
- G12 - Financial Economics - - General Financial Markets - - - Asset Pricing
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-01-16 (All new papers)
- NEP-DGE-2010-01-16 (Dynamic General Equilibrium)
- NEP-SEA-2010-01-16 (South East Asia)
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