A Structural Investigation into the Price and Wage Dynamics in Hong Kong
Michael Cheng and
Wai-Yip Alex Ho
Additional contact information
Michael Cheng: Research Department, Hong Kong Monetary Authority
No 920, Working Papers from Hong Kong Monetary Authority
This paper estimates the degree of wage and price flexibility of the Hong Kong economy with the use of a stylised dynamic stochastic general equilibrium (DSGE) model developed for the Hong Kong economy. It also studies the factors contributing to deflation in Hong Kong following the Asian financial crisis (i.e. during the period from 1998 to 2003) and finds that declining import prices were the main culprit. Consistent with earlier studies on the subject and anecdotal evidence, wages and prices in Hong Kong are found to be (relatively) flexible.
Keywords: DSGE; Bayesian Estimation; Nominal Rigidities (search for similar items in EconPapers)
JEL-codes: F30 G01 G15 G12 (search for similar items in EconPapers)
Pages: 17 pages
New Economics Papers: this item is included in nep-dge and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
http://www.hkma.gov.hk/media/eng/publication-and-r ... HKMAWP09_20_full.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hkg:wpaper:0920
Access Statistics for this paper
More papers in Working Papers from Hong Kong Monetary Authority Contact information at EDIRC.
Bibliographic data for series maintained by Simon Chan ().