Productivity, wage and inflation relationship for a sample of developed countries: new evidence from panel cointegration tests with multiple structural breaks.
|Productivity, wage and inflation relationship for a sample of developed countries: new evidence from panel cointegration tests with multiple structural breaks.
|Year of Publication
|Ladu, MG, Meleddu, M
|International Journal of Applied Economics
This paper examinesthe long run relationship among real wages, inflation and labor productivity over the period 1960-2011, for 11 developed economies, using a comprehensive set of empirical tests. We present a dual-level analysis: first, we consider the panel properties of the data checking for panel cointegration with structural breaks, allowing also for cross sectional dependence; hence, we examine each country separately and we investigate the properties of the variables through a set of tests, controlling also for structural breaks in order to check for robustness of data. Results do not show evidence of a long run relationship.
|cointegration, inflation, productivity, structural breaks, unit root, wages