Unemployment equilibria and input prices: theory and evidence from the United States
Article Abstract:
An efficiency-wage model that generates significant, business-cycle frequency movements in unemployment equilibria was described. The model assumes that business-cycle frequency movements are driven by real input prices and that increases in nonwage input prices result in wage reductions. Furthermore, the model takes only the real price of oil and the real rate of interest into consideration to explain the postwar shifts in movements of unemployment in the US. The model is supported by empirical evidence from Granger causality tests and a cointegration-error correction framework.
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1998
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Modelling prices in a SAM structure
Article Abstract:
An Social Accounting Matrix (SAM) model of intersectoral prices was formulated to study the interrelationships among households, factors, activities and accounting prices. Basically, SAM models are derived from the input-output model that present income generation from non-industrial sources. The advantages of SAM models include the capacity to measure absolute price variations and the division of the price-transmission matrix with structural path decomposition methodologies.
Publication Name: Review of Economics and Statistics
Subject: Mathematics
ISSN: 0034-6535
Year: 1995
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Insights or forecasts? An evaluation of a computable general equilibrium model of Spain
Article Abstract:
A comparison of a 1987 computable general equilibrium (CGE) model for the Spanish economy in 1988 to the actual figures indicates a strong correlation in most areas between the forecast and the reality. The CGE was more accurate in some areas, such as the GNP, than others, such as gross business surplus, and these shortcomings point to areas where more data is required. It appears that CGE's can be used as forecasting methods, not just theoretical insights.
Publication Name: Journal of Forecasting
Subject: Mathematics
ISSN: 0277-6693
Year: 1993
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