IDEAS home Printed from https://ideas.repec.org/p/zbw/bofrdp/rdp1989_006.html

Labour supply, wages and prices in the BOF4 quarterly model of the Finnish economy

Author

Listed:
  • Tarkka, Juha
  • Willman, Alpo
  • Rasi, Chris-Marie

Abstract

This paper describes the supply of labour and the determination of wages and prices in the BOF4 model. Labour supply is modelled as a function of real wage, income and discouraged worker effects. Wages are a functi on of the unemployment rate. Besides that they respond to the deviation of actual wages from equilibrium wages dictated by nominal marginal productivity. Expected inflation and taxation are entered through the separate treatment of negotiated wages. Manufacturing is assumed to be the wage leader in the economy so that developments in other sectors are affected by the wage drift in manufacturing and are tied to manufacturing wages also in the long-run.

Suggested Citation

  • Tarkka, Juha & Willman, Alpo & Rasi, Chris-Marie, 1989. "Labour supply, wages and prices in the BOF4 quarterly model of the Finnish economy," Bank of Finland Research Discussion Papers 6/1989, Bank of Finland.
    • Handle: RePEc:zbw:bofrdp:rdp1989_006
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/211541/1/bof-rdp1989-006.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tarkka, Juha & Willman, Alpo, 1988. "Exports and imports in the BOF4 quarterly model of the Finnish economy," Research Discussion Papers 3/1988, Bank of Finland.
    2. Tarkka, Juha, 1985. "Monetary policy in the BOF3 quarterly model of the Finnish economy," Economic Modelling, Elsevier, vol. 2(4), pages 298-306, October.
    3. Dreze, Jacques H., 1987. "Underemployment equilibria : From theory to econometrics and policy," European Economic Review, Elsevier, vol. 31(1-2), pages 9-34.
    4. repec:bla:econom:v:50:y:1983:i:199:p:221-33 is not listed on IDEAS
    5. Tarkka, Juha & Willman, Alpo, 1988. "Exports and imports in the BOF4 quarterly model of the Finnish economy," Bank of Finland Research Discussion Papers 3/1988, Bank of Finland.
    6. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762, January.
    7. Michael Abbott & Orley Ashenfelter, 1979. "Labour Supply, Commodity Demand and the Allocation of Time: Correction," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 46(3), pages 567-569.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tarkka, Juha & Willman, Alpo & Rasi, Chris-Marie, 1989. "Labour supply, wages and prices in the BOF4 quarterly model of the Finnish economy," Research Discussion Papers 6/1989, Bank of Finland.
    2. Tarkka, Juha & Willman, Alpo & Männistö, Hanna-Leena, 1989. "Consumption and investment in the BOF4 quarterly model of the Finnish economy," Bank of Finland Research Discussion Papers 9/1989, Bank of Finland.
    3. Tarkka, Juha & Männistö, Hanna-Leena & Willman, Alpo, 1990. "Macroeconomic foundations and simulation properties of the BOF4 quarterly model of the Finnish economy," Bank of Finland Research Discussion Papers 2/1990, Bank of Finland.
    4. Diane Whitmore, 2002. "What Are Food Stamps Worth?," Working Papers 847, Princeton University, Department of Economics, Industrial Relations Section..
    5. Mora Rodriguez, Jhon James, 2013. "Introduccion a la teoría del consumidor [Introduction to Consumer Theory]," MPRA Paper 48129, University Library of Munich, Germany, revised 08 Jul 2013.
    6. Linh, Pham Thi Ngoc & Burton, Michael & Vanzetti, David, 2008. "The welfare of small livestock producers in Vietnam under trade liberalisation - integration of trade and household models," Conference papers 331787, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Gomes Pereira, Matheus Wemerson & Teixeira, Erly Cardoso & Raszap-Skorbiansky, Sharon, 2008. "Impacts of the Doha Round on Brazilian, Chinese and Indian agribusiness," Conference papers 331791, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. repec:eee:labchp:v:1:y:1986:i:c:p:273-304 is not listed on IDEAS
    9. Tarkka, Juha & Männistö, Hanna-Leena & Willman, Alpo, 1990. "Macroeconomic foundations and simulation properties of the BOF4 quarterly model of the Finnish economy," Research Discussion Papers 2/1990, Bank of Finland.
    10. Diane Whitmore, 2002. "What Are Food Stamps Worth?," Working Papers 847, Princeton University, Department of Economics, Industrial Relations Section..
    11. McAdam, Peter & Willman, Alpo, 2003. "New Keynesian Phillips Curves: a reassessment using euro-area data," Working Paper Series 265, European Central Bank.
    12. repec:eee:labchp:v:1:y:1986:i:c:p:3-102 is not listed on IDEAS
    13. Omaira Dayana Velázquez Mantilla, Mauricio Alejandro Mateus Tovar Nelson Manolo Chávez Munoz, 2011. "Cambios estructurales en la participación laboral en Colombia desde 1984 - 2008: un análisis econométrico del mercado laboral urbano para la generación de políticas de empleo," Revista CIFE, Universidad Santo Tomás.
    14. Teklewold, Hailemariam, 2011. "Farming or burning? shadow prices and farmer’s impatience on the allocation of multi-purpose resource in the mixed farming system of Ethiopia," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116080, European Association of Agricultural Economists.
    15. J. K. Pappalardo, 2022. "Economics of Consumer Protection: Contributions and Challenges in Estimating Consumer Injury and Evaluating Consumer Protection Policy," Journal of Consumer Policy, Springer, vol. 45(2), pages 201-238, June.
    16. Rajeev K. Goel & Shoji Haruna, 2021. "Unmasking the demand for masks: Analytics of mandating coronavirus masks," Metroeconomica, Wiley Blackwell, vol. 72(3), pages 580-591, July.
    17. Angela Daley & Thesia I. Garner & Shelley Phipps & Eva Sierminska, 2020. "Differences across Place and Time in Household Expenditure Patterns: Implications for the Estimation of Equivalence Scales," Economic Working Papers 520, Bureau of Labor Statistics.
    18. Lee, Jonq-Ying & Brown, Mark G. & Schwartz, Brooke, 1986. "The Demand For National Brand And Private Label Frozen Concentrated Orange Juice: A Switching Regression Analysis," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 11(01), pages 1-7, July.
    19. T.R.L. Fry & R.D. Brooks & Br. Comley & J. Zhang, 1993. "Economic Motivations for Limited Dependent and Qualitative Variable Models," The Economic Record, The Economic Society of Australia, vol. 69(2), pages 193-205, June.
    20. Marie-Estelle Binet, 2013. "The Linear Expenditure System and the Demand for Municipal Public Services: The Median Voter Specification Revisited," Urban Studies, Urban Studies Journal Limited, vol. 50(9), pages 1689-1703, July.
    21. Arnade, Carlos & Davis, Christopher G., 2019. "Chickens, Feed Grains, or Both: The Mexican Market," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 51(2), pages 286-303, May.
    22. Redding, Stephen J. & Weinstein, David E., 2016. "A unified approach to estimating demand and welfare," LSE Research Online Documents on Economics 67681, London School of Economics and Political Science, LSE Library.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:bofrdp:rdp1989_006. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/bofgvfi.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.