Wage versus currency devaluation, price pass-through and income distribution: a comparative input–output analysis of the Greek and Italian economies

Theodore Mariolis (), Nikolaos Rodousakis () and Apostolis Katsinos ()
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Nikolaos Rodousakis: Panteion University
Apostolis Katsinos: Neapolis University

Journal of Economic Structures, 2019, vol. 8, issue 1, 1-23

Abstract: Abstract Using input–output data from Symmetric Input–Output Tables for the year 2010 and relevant price models, this paper provides empirical estimations of medium- and long-run effects of wage and currency devaluations on international price competitiveness and income distribution for two ‘PIIGS economies’, i.e. Greece and Italy. The findings reveal certain differentiated socio-technical production conditions in the economies under consideration casting doubt on the effectiveness of demand-switching policy measures implemented in the post-2010 Eurozone economy. At the same time, however, wage devaluation is found to be a comparatively slow and inefficient process to improve international price competitiveness in the medium-run.

Keywords: Income distribution; Input–output price models; International price competitiveness; PIIGS economies; Price pass-through; Wage and currency devaluations (search for similar items in EconPapers)
JEL-codes: C67 D57 E11 E64 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (4)

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DOI: 10.1186/s40008-019-0140-8

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