The Price-Wage Mechanism in Poland: An Endogenous Switching Model
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. Copyright Kluwer Academic Publishers 1997
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- Franz, Wolfgang & Gordon, Robert J., 1993.
"German and American wage and price dynamics: Differences and common themes,"
2, University of Konstanz, Center for International Labor Economics (CILE).
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- Wolfgang Franz & Robert J. Gordon, 1993. "German and American Wage and Price Dynamics: Differences and Common Thenes," NBER Working Papers 4292, National Bureau of Economic Research, Inc.
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- Osiewalski, Jacek & Steel, Mark F. J., 1993.
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Elsevier, vol. 57(1-3), pages 345-363.
- Osiewalski, J. & Steel, M.F.J., 1990. "Robust Bayesian inference in elliptical regression models," Discussion Paper 1990-32, Tilburg University, Center for Economic Research.
- Osiewalski, J. & Steel, M., 1990. "Robust Bayesian Inference In Elliptical Regression Models," Papers 9032, Tilburg - Center for Economic Research.
- Welfe, Aleksander, 1991. "Modelling Wages in Centrally Planned Economies: The Case of Poland," Economic Change and Restructuring, Springer, vol. 24(1), pages 47-58.
- Pole, A. M. & Smith, A. F. M., 1985. "A bayesian analysis of some threshold switching models," Journal of Econometrics, Elsevier, vol. 29(1-2), pages 97-119.
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