The Expectations Hypothesis and the Aggregate Wage Equation
Some Empirical Evidence for Canada
Bibliographic Data
| ID | 9728366 |
|---|---|
| Authors | Stephen J Turnovsky (0000-0002-0864-2118, corresponding author) |
| Year | 1972 |
| Volume | 39 |
| Issue | 153 |
| Pages | 1 |
| Publication date | 1972-02-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | JSTOR (PUBLISHER) |
| DOI | 10.2307/2552052 |
| OpenAlex | W2068322900 |
| Language | EN |
| Citations received | 7 |
| References cited | 7 |
Dating back to the original pioneering work of Phillips [18] in 1958, the money-wage/unemployment trade-off has been subjected to extensive empirical investigation by numerous economists using data for a number of different countries.2 In general, the trade-off originally discovered by Phillips for the United Kingdom has been confirmed, although subsequent work has shown that other variables also are important in determining the percentage change in money wages. Recently, a number of authors have sought to develop a sounder theoretical basis for the observed relationship. One theory which has recently been receiving increasing attention is the so-called expectations hypothesis. This theory develops money-wage equations which depend upon future price expectations and/or money-wage expectations, as well as the unemployment rate.3 One particularly controversial aspect of this theory is the magnitude of the coefficient of the expectations variable in the relationship. In the absence of money illusion and under perfect competition, individuals should ultimately fully anticipate the inflation, implying that the coefficient should be unity. This in turn would imply the absence of a long-run money-wage/unemployment trade-off, or, equivalently, mean that the long-run Phillips curve is vertical, passing through the natural rate of unemployment (Fried
Aggregate (composite) · Econometrics · Economics · Empirical evidence · Labour economics · Wage · Economic theories and models · Economic Theory and Institutions · Economic Theory and Policy · Philosophy
Unemployment and Inflation
A Microeconometric Analysis of Spillovers within the Canadian Wage Determination Process
On the relation between savings, distribution and inflation
A Microeconometric Analysis of the Canadian Wage Determination Process
On the Role of Inflationary Expectations in a Short-Run Macro-Economic Model
Rational and non-rational expectations of inflation in Korea
Inflationary Expectations, Taxes and the Political Business Cycle
The Distributed Lag Between Capital Appropriations and Expenditures
The Role of Monetary Policy
A Test of the "Expectations Hypothesis" Using Directly Observed Wage and Price Expectations
Money-Wage Dynamics and Labor-Market Equilibrium
The Relation between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1862-1957
The Relation Between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861–1957 1
Micro-Economic Foundations of Employment and Inflation Theory
| Unique citing works | 7 |
|---|---|
| Citations per year | 0.13 |
| Citation span | 1974 - 1988 (15) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 2 |