Identification and estimation of a labour market model for the tradeables sector: the Greek case
Milas, Costas and Otero, Jesus (1999) Identification and estimation of a labour market model for the tradeables sector: the Greek case. Working Paper. University of Warwick, Department of Economics, Coventry.
WRAP_Milas_528_milasote.pdf - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Official URL: http://www2.warwick.ac.uk/fac/soc/economics/resear...
This paper derives a theoretical labour market model for the tradeables sector of a small open economy. Using Greek manufacturing data and applying multivariate cointegrating techniques, two cointegrating vectors are estimated based on the a priori restrictions provided by the theoretical model; a labour demand and a real exchange rate equation, respectively. The short-run estimates of the model suggest that labour decisions not only depend upon past disequilibria in the labour market, but also on the discrepancy between the real exchange rate and its implied long-run equilibrium relationship, that is, the magnitude of the real exchange rate misalignment.
|Item Type:||Working or Discussion Paper (Working Paper)|
|Subjects:||D History General and Old World > DF Greece
H Social Sciences > HD Industries. Land use. Labor
|Divisions:||Faculty of Social Sciences > Economics|
|Library of Congress Subject Headings (LCSH):||Labor market -- Greece, Cointegration, Estimation theory, Greece -- Commerce|
|Series Name:||Warwick economic research papers|
|Publisher:||University of Warwick, Department of Economics|
|Place of Publication:||Coventry|
|Number of Pages:||19|
|Status:||Not Peer Reviewed|
|Access rights to Published version:||Open Access|
|References:||Alogoskoufis, G., 1990. Competitiveness, wage adjustment and macroeconomic policy in the dependent economy: the case of Greece. Greek Economic Review 12, 15-57. Alogoskoufis, G., 1995. The two faces of Janus: institutions, policy regimes and macroeconomic performance in Greece. Economic Policy 20, 149-194. Bean, C.R., 1994. European unemployment: a survey. Journal of Economic Literature 32, 573-619. Bruno, M., Sachs, J.D., 1985. Economics of Worldwide Stagflation, Blackwell, Oxford. Edwards, S., 1989. Real Exchange Rates, Devaluation, and Adjustment: Exchange Rate Policy in Developing Countries, MIT Press, Cambridge, MA. Ericsson, N.R., Hendry, D.F., Tran, H.A., 1994. Cointegration, seasonality, encompassing and the demand for money in the United Kingdom. In: Hargreaves, C., (Ed.) Non Stationary Time Series Analysis and Cointegration, Oxford University Press, Oxford. Hendry, D.F., 1995. Dynamic Econometrics, Oxford University Press, Oxford. Hendry, D.F., Doornik, J.A., 1994. Modelling linear dynamic econometric systems. Scottish Journal of Political Economy 41, 1-33. Hendry, D.F., Doornik, J.A., 1997. Modelling dynamic systems using PcFiml 9.0 for Windows, International Thomson Business Press. Johansen, S., 1988. Statistical analysis of cointegration vectors. Journal of Economic Dynamics and Control 12, 231-254. Johansen, S., 1995. Likelihood-Based Inference in Cointegrated Vector Autoregressive Models, Oxford University Press, Oxford. Katseli, L.T., 1990. Structural Adjustment of the Greek Economy. CEPR Discussion Paper 374. Layard, R., Nickell, S., Jackman, R., 1991. Unemployment: Macroeconomic Performance and the Labour Market, Oxford University Press, Oxford. Milas, C., 1997. Labour market decisions and Greek manufacturing competitiveness. Journal of Policy Modeling, forthcoming. Oi, W., 1962, Labour as a quasi-fixed factor of production. Journal of Political Economy 70, 538-555. Osterwald-Lenum, M., 1992. A note with quantiles of the asymptotic distribution of the maximum likelihood cointegration rank test statistics. Oxford Bulletin of Economics and Statistics 54, 461-472. Wickens, M.R., 1996. Interpreting cointegrating vectors and common stochastic trends. Journal of Econometrics 74, 255-271.|
Actions (login required)