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A Comment on "Wage Growth and the Inflation Process: a Multivariate Cointegration Analysis"

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Author Info
Henry, O.T.
Olekalns, N.

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Abstract

Research by Ghali (1999) tested for the existence of causality between wages and prices in United States' aggregate data using a multivariate cointegration framework. We show that Ghali's model is misspecified and that the correct specification leads to a different interpretation of the long-run dynamic relation between wages and prices.

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Publisher Info
Paper provided by The University of Melbourne in its series Department of Economics - Working Papers Series with number 719.

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Length: 17 pages
Date of creation: 1999
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Handle: RePEc:mlb:wpaper:719

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Related research
Keywords: INFLATION ; WAGES ; ECONOMETRICS;

Find related papers by JEL classification:
C00 - Mathematical and Quantitative Methods - - General - - - General
E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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