Wages, Prices and Incomes Policies
Some Comments
Bibliographic Data
| ID | 9725707 |
|---|---|
| Authors | Kenneth F Wallis (corresponding author) |
| Year | 1971 |
| Volume | 38 |
| Issue | 151 |
| Pages | 304 |
| Publication date | 1971-08-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | JSTOR (PUBLISHER) |
| DOI | 10.2307/2552846 |
| OpenAlex | W2031932198 |
| Language | EN |
| Citations received | 4 |
| References cited | 2 |
where p, w, m, n and q are proportionate rates of change of retail prices, wage rates, import prices lagged one quarter, percentage of labour force unionized and output per head, respectively, and U is unemployment rate. The equations are estimated by ordinary least squares for whole sample period 1948(3)-1967(2), and for separate and policy-off periods [these being, policy-on: 1948(3)-1950(3), 1956(1)-1956(4), 1961(3)-1967(2); and policy-off: 1950(4)-1955(4), 1957(1)-1961(2)]. With respect to wage equation, L-P conclude from estimates for policy-on period that there is then no relation between w and explanatory variables, and hence that the wage inflation-unemployment trade-off is effectively broken during periods of incomes policy. These words are those of Parkin [3], who confirms this finding in a subsequent study of wage equation which takes some account of autocorrelated errors by introducing a dynamic specification. This Note is concerned with three aspects of L-P's work. First, their assessment of effects of various policies on rates of wage and price inflation is re-examined, within context of their ordinary leastsquares estimates. Second, still going along with their assumption that single-equation methods are appropriate, absence from their work of any treatment of autocorrelation and some implications for specification of price equation are noted. Finally, there are some observations on simultaneous-equations problem
Economics · Labour economics · Consumer Market Behavior and Pricing · Economic theories and models · Monetary Policy and Economic Impact
| Unique citing works | 4 |
|---|---|
| Citations per year | 0,08 |
| Citation span | 1975 - 1995 (21) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |