 Empirical Studies of the Price EquationA. J. Hagger
Chapter 4 in Inflation: Theory and Policy, 1977, pp 71-91 from Palgrave Macmillan Abstract: Abstract From the survey of models of the inflationary process given in Chapter 2 it will be clear that there are two relationships which play a dominant role in the modern theory of inflation. One of these is the ‘price equation’ — a relationship which sets out to explain either the level of prices, or the rate of increase of prices, in the mark-up sector as a whole or in some sub-sector of the mark-up sector. The other is the ‘wage equation’, which is a relationship purporting to explain either the level, or the rate of increase of money wages per man or per man-hour in the mark-up sector or in some part of that sector. While it is certainly possible to explain inflation without recourse to a price and/or wage equation (witness the Keynesian model of Section 2.2), inflation theorists have come to rely increasingly on these two relationships and they now occupy the same central position in models of the inflationary process as the consumption function occupies in Keynesian models of real-income determination. Keywords: Price Index; Excess Demand; Price Determination; Wage Equation; Price Equation (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-15735-8_4 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-15735-8_4 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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