Abstract
In this chapter the factors relating wages, prices, unemployment and other variables are discussed. Various explanations of the percentage change in wages are presented in the first two sections and empirical evidence is examined in Section 4.3. Since it is clear that prices and wages are interdependent a simple two-equation model of this relationship is presented in Section 4.4 and estimated in Section 4.5. These sections also serve as a prelude to Chapters 5 and 6 where larger systems of equations are considered.
This is a preview of subscription content, log in via an institution to check access.
Preview
Unable to display preview. Download preview PDF.
References
Agarwala, R. et al. (1972), ‘A Neoclassical Approach to the Determination of Prices and Wages’, Economica, N.S., vol. 39, 250–63.
Archibald, G. C. (1969), ‘The Phillips Curve and the Distribution of Unemployment’, American Economic Review Proceedings, vol. 59, 124–34.
Black, S. W. and Kelejian, H. H. (1970), ‘A Macro Model of the U.S. Labour Market’, Econometrica, vol. 38, 712–41.
Bodkin, R. G. et al. (1966), ‘Price Stability and High Employment : The Options for Canadian Economic Policy’ (Ottawa: The Economic Council of Canada.)
Bowen, W. G. (1960), The Wage-Price Issue: A Theoretical Analysis (Princeton: Princeton University Press).
Bowen, W. G. and Berry, R. A. (1963), ‘Unemployment Conditions and Movements of the Money Wage Level’, Review of Economics and Statistics, vol. 55, 163–72.
Brownlie, A. D. and Hampton, P. (1967), ‘An Econometric Study of Wage Determination in New Zealand’, International Economic Review, vol. 8, 327–34.
Corry, B. and Laidler, D. (1967), ‘The Phillips Relation : A Theoretical Explanation’, Economica, N.S., vol. 34, 189–97.
Dicks-Mireaux, L. A. (1961), ‘The Interrelationship Between Cost and Price Changes, 1946–59 : A Study of Inflation in Post-war Britain’, Oxford Economic Papers, vol. 13, 267–92.
Friedman, M. (1968), ‘The Role of Monetary Policy’, American Economic Review, vol. 58, 1–17.
Hines, A. G. (1964), ‘Trade Unions and Wage Inflation in the U.K. 1893–1961’, Review of Economic Studies, vol. 31, 221–51.
Hines, A. G. (1969), ‘Wage Inflation in the U.K. 1948–1962 : A Disaggregated Study’, Economic Journal, vol. 79, 66–89.
Holt, C. C. (1969), ‘Improving the Labour Market Trade Off between Inflation and Unemployment’, American Economic Review Proceedings, vol. 59, 135–46.
Johnson, H. G. and Nobay, A. R. (eds.) (1971), The Current Inflation (London: Macmillan).
Johnston, J. (1972), Econometric Methods, 2nd ed. (New York : McGraw-Hill).
Klein, L. R. and Ball, R. J. (1959), ‘Some Econometrics of the Determination of Absolute Prices and Wages’, Economic Journal, vol. 69, 465–82.
Kuh, E. (1967), ‘A Productivity Theory of Wage Levels : An Alternative to the Phillips Curve’, Review of Economic Studies, vol. 34, 333–60.
Laden, B. E. (1972), ‘Perfect Competition, Average Cost Pricing and the Price Equation’, Review of Economics and Statistics, vol. 54, 84–8.
Lipsey, R. G. (1960), ‘The Relation Between Unemployment and the Rate of Change of Money Wage Rates in the U.K. 1862–1957: A Further Analysis’, Economica, N.S., vol. 27, 1–31.
Lipsey, R. G. and Parkin, J. M. (1970), ‘Incomes Policy: A Reappraisal’, Economica, N.S., vol. 37, 115–38.
Lipsey, R. G. and Steuer, M. D. (1961), ‘The Relation Between Profits and Wage Rates’, Economica, N.S., vol. 28, 137–55.
Perry, G. L. (1966), Unemployment, Money Wage Rates and Inflation (Boston: The M.I.T. Press).
Phelps, E. S. (1970), Microeconomic Foundations of Employment and Inflation Theory (New York : Norton).
Phillips, A. W. (1958), ‘The Relationship Between Unemployment and the Rate of Change of Money Wage Rates in the U.K., 1861–1957’, Economica, N.S., vol. 25, 283–99.
Pierson, G. (1968), ‘The Effect of Union Strength on the U.S. Phillips Curve’, American Economic Review, vol. 58, 456–67.
Taylor, J. (1970), ‘Hidden Unemployment, Hoarded Labour and the Phillips Curve’, Southern Economic Journal, vol. 37, 1–16.
Thomas, R. L. and Stoney, P. J. M. (1971), ‘Unemployment Dispersion as a Determinant of Wage Inflation in the U.K., 1925–1966’, Manchester School, vol. 39, 83–116.
Turnovsky, S. J. (1972), ‘The Expectations Hypothesis and the Aggregate Wage Equation: Some Empirical Evidence for Canada’, Economica, N.S., vol. 39, 1–17.
Vanderkamp, J. (1972), ‘Wage Adjustment, Productivity and Price Change Expectations’, Review of Economic Studies, vol. 39, 61–72.
Copyright information
© 1974 R. F. Wynn and K. Holden
About this chapter
Cite this chapter
Wynn, R.F., Holden, K. (1974). Wage-Price Models. In: An Introduction to Applied Econometric Analysis. Palgrave, London. https://doi.org/10.1007/978-1-349-15548-4_4
Download citation
DOI: https://doi.org/10.1007/978-1-349-15548-4_4
Publisher Name: Palgrave, London
Print ISBN: 978-0-333-16712-0
Online ISBN: 978-1-349-15548-4
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)