In this paper we analyse the wage-price relationship of an economy in transition characterized by important structural changes. It is known (see Perron, 1989) that structural breaks in stationary time series can induce apparent unit roots. The stationarity analysis of the series employed in the present model is conducted jointly with the assumption that the breakpoint location is unknown. We follow a testing procedure recently proposed by Zivot and Andrews (1992). Cointegration analysis of wages and prices in the presence of structural breaks finds empirical evidence in favour of two cointegrating vectors involving prices and wages. Our analysis focuses on the different structural behaviour of the price-wage dynamic relationship in the short and long term; we also demonstrate the relative importance of import prices as a source of wage-price fluctuations. © 1994 Kluwer Academic Publishers.

Golinelli R., Orsi R. (1994). Price-wage dynamics in a transition economy: The case of Poland. ECONOMICS OF PLANNING, 27(3), 293-313 [10.1007/BF01265337].

Price-wage dynamics in a transition economy: The case of Poland

Golinelli R.;Orsi R.
1994

Abstract

In this paper we analyse the wage-price relationship of an economy in transition characterized by important structural changes. It is known (see Perron, 1989) that structural breaks in stationary time series can induce apparent unit roots. The stationarity analysis of the series employed in the present model is conducted jointly with the assumption that the breakpoint location is unknown. We follow a testing procedure recently proposed by Zivot and Andrews (1992). Cointegration analysis of wages and prices in the presence of structural breaks finds empirical evidence in favour of two cointegrating vectors involving prices and wages. Our analysis focuses on the different structural behaviour of the price-wage dynamic relationship in the short and long term; we also demonstrate the relative importance of import prices as a source of wage-price fluctuations. © 1994 Kluwer Academic Publishers.
1994
Golinelli R., Orsi R. (1994). Price-wage dynamics in a transition economy: The case of Poland. ECONOMICS OF PLANNING, 27(3), 293-313 [10.1007/BF01265337].
Golinelli R.; Orsi R.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/956035
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