If you need an accessible version of this item please contact JSTOR User Support

Wage and Price Adjustment in a Multimarket Disequilibrium Model

Bernard Salanié
Journal of Applied Econometrics
Vol. 6, No. 1 (Jan. - Mar., 1991), pp. 1-15
Published by: Wiley
Stable URL: http://www.jstor.org/stable/2096699
Page Count: 15
  • Download PDF
  • Cite this Item

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If you need an accessible version of this item please contact JSTOR User Support
Wage and Price Adjustment in a Multimarket Disequilibrium Model
Preview not available

Abstract

The estimation of wage and price adjustment equations rests heavily on the use of tension variables that aim at capturing the disequilibria in the labour and goods markets. Disequilibrium models therefore provide a natural way of endogenizing these tension variables. This paper estimates jointly a two-market disequilibrium model and a wage and price adjustment block where price and wage growth react to excess effective demands. The estimation is carried out using the simulated pseudo-maximum-likelihood methods developed by Laroque and Salanie (1989); the results look promising as regards the estimation of even more sophisticated models.

Page Thumbnails

  • Thumbnail: Page 
[1]
    [1]
  • Thumbnail: Page 
2
    2
  • Thumbnail: Page 
3
    3
  • Thumbnail: Page 
4
    4
  • Thumbnail: Page 
5
    5
  • Thumbnail: Page 
6
    6
  • Thumbnail: Page 
7
    7
  • Thumbnail: Page 
8
    8
  • Thumbnail: Page 
9
    9
  • Thumbnail: Page 
10
    10
  • Thumbnail: Page 
11
    11
  • Thumbnail: Page 
12
    12
  • Thumbnail: Page 
13
    13
  • Thumbnail: Page 
14
    14
  • Thumbnail: Page 
15
    15