Economic theory and econometric dynamics in modelling wages and prices in the United Kingdom

Paul Fisher and Gunnar Bårdsen

Empirical Economics, 1999, vol. 24, issue 3, 483-507

Abstract: We show that a "competing claims" model of imperfect competition can explain the movements of wages and prices in the United Kingdom, using quarterly data covering 1976-93. We argue that careful attention both to economic theory and to the interaction between dynamics and identification is crucial in the building of the model and to dynamic econometric models in general. We use a small numerical example with simulated cointegrated data to illustrate the potential pitfalls.

Keywords: Dynamic; econometric; models; ·; steady; state; ·; cointegration; ·; equilibrium; correction; ·; wages; ·; prices (search for similar items in EconPapers)
JEL-codes: C32 C51 E31 J30 (search for similar items in EconPapers)
Date: 1999-08-16
Note: received: January 1998/final version received: November 1998
References: Add references at CitEc
Citations: View citations in EconPapers (19)

Downloads: (external link)
http://link.springer.de/link/service/journals/00181/papers/9024003/90240483.pdf (application/pdf)
Access to the full text of the articles in this series is restricted

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:empeco:v:24:y:1999:i:3:p:483-507

Ordering information: This journal article can be ordered from
http://www.springer. ... rics/journal/181/PS2

Access Statistics for this article

Empirical Economics is currently edited by Robert M. Kunst, Arthur H.O. van Soest, Bertrand Candelon, Subal C. Kumbhakar and Joakim Westerlund

More articles in Empirical Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().