Advertisement

A three-sector model of earnings behaviour

  • D. J. Mackie

Abstract

In this chapter we discuss some research undertaken in order to improve the properties of the earnings equations in the Bank of England’s quarterly macroeconomic model of the UK economy.

Keywords

Forecast Error Real Wage Inflationary Expectation Retention Ratio Real Earning 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Breusch, T. S. and Godfrey, L. (1981) A review of recent work on testing for auto-correlation in dynamic simultaneous models, in Macroeconomic Analysis: Essays in Macroeconomics and Econometrics (eds D. Currie, R. Nobay and D. Peel), Croom Helm, London.Google Scholar
  2. Bruno, M. and Sachs, J. D. (1985) Economics of Worldwide Stagflation, Harvard University Press, Cambridge, MA.Google Scholar
  3. Budd, A., Dicks, G., Holly, S., Keating, G. and Robinson, B. (1984) The London Business School econometric model of the UK. Economic Modelling, 1(4), 355–420.CrossRefGoogle Scholar
  4. Carruth, A. A. and Oswald, A. J. (1987) Wage inflexibility in Britain Oxford Bulletin of Economics and Statistics (Special Issue), 49, 59–78.CrossRefGoogle Scholar
  5. Desai, M., Keil, M. and Wadhwani, S. (1984) Incomes policy in a political environment: a structural model for the UK 1961–1980, in Applied Decision Analysis and Economic Behaviour (ed. A. J. Hughes Hallett), Nijhoff, Dordrecht.Google Scholar
  6. Foster, N., Henry, S. G. B. and Trinder, C. (1986) Public and private sector pay: some further results, Discussion Paper No. 120, National Institute of Economic and Social Research.Google Scholar
  7. Godfrey, L. G. (1983) On the uses of misspecification checks and tests of non-nested hypothesis in empirical econometrics. Economic Journal (Supplement), 94, 69–81.CrossRefGoogle Scholar
  8. Gregory, M., Lobban, P. and Thomson, A. (1985) Wage settlements in manufacturing, 1979–84: evidence from the CBI pay databank. British Journal of Industrial Relations, 23, 339–57.CrossRefGoogle Scholar
  9. Gregory, M., Lobban, P. and Thomson, A. (1987) Pay settlements in manufacturing industry, 1979–84: a micro-data study of the impact of product and labour market pressures. Oxford Bulletin of Economics and Statistics (Special Issue), 49, 129–50.CrossRefGoogle Scholar
  10. Hall, S. G. and Henry, S. G. B. (1987) Wage models. National Institute Economic Review, February, No. 119, 70–5.Google Scholar
  11. Harvey, A. C. (1981) The Econometric Analysis of Time Series, Philip Allan, Oxford.Google Scholar
  12. Holly, S. and Smith, P. (1987) A two-sector analysis of the UK labour market. Oxford Bulletin of Economics and Statistics (Special Issue), 49, 79–102.CrossRefGoogle Scholar
  13. Layard, R. and Nickell, S. (1986) Unemployment in Britain. Economica (Supplement), 53, S121–69.CrossRefGoogle Scholar
  14. McCallum, B. T. (1976a) Rational expectations and the natural rate hypothesis: some consistent estimates. Econometrica, 44, 43–52.CrossRefGoogle Scholar
  15. McCallum, B. T. (1976b) Rational expectations and the estimation of econometric models: an alternative procedure. International Economic Review, 17, 484–90.CrossRefGoogle Scholar
  16. Mackie, D. J. (1987) A three sector model of earnings behaviour, Bank of England Discussion Paper, Technical Series No. 16.Google Scholar
  17. Nickell, S. J. (1982) A bargaining model of the Phillips curve, Centre for Labour Economics Discussion Paper No. 130, London School of Economics.Google Scholar
  18. Nickell, S. J. (1984) The modelling of wages and employment, in Econometrics and Quantitative Economics (eds D. F. Hendry and K. F. Wallis), Blackwell, Oxford.Google Scholar
  19. Nickell, S. (1987) Why is wage inflation in Britain so high? Oxford Bulletin of Economics and Statistics (Special Issue), 49, 103–28.CrossRefGoogle Scholar
  20. Nickell, S. J. and Andrews, M. (1983) Unions, real wages and employment in Britain 1951–79. Oxford Economic Papers (Supplement), 35, 183–206.Google Scholar
  21. Oswald, A. J. (1986) Wage determination and recession: a report on recent work. Centre for Labour Economics Discussion Paper No. 243, London School of Economics.Google Scholar
  22. Oswald, A. J. and Turnbull, P. (1985) Pay and employment determination in Britain: what are labour contracts really like? Oxford Review of Economic Policy, 1, 80–97.CrossRefGoogle Scholar
  23. Rowlatt, P. A. (1986) A model of wage bargaining, Government Economic Service Working Paper No. 91 (Treasury Working Paper No. 44).Google Scholar
  24. Smith, P. and Holly, S. (1985) Wage and employment determination in the UK, Centre for Economic Forecasting Discussion Paper No. 137, London Business School.Google Scholar
  25. Wallis, K. F. (ed.), (1986) Models of the UK Economy, Oxford University Press, Oxford.Google Scholar
  26. Whitley, J. D. (1986) A model of incomes policy in the UK, 1963–79. Manchester School of Economic and Social Studies, 54, 31–64.CrossRefGoogle Scholar
  27. Wren-Lewis, S. (1985) Private sector earnings and excess demand from 1966 to 1980. Oxford Bulletin of Economics and Statistics, 47, 1–18.CrossRefGoogle Scholar

Copyright information

© Chapman and Hall Ltd 1990

Authors and Affiliations

  • D. J. Mackie

There are no affiliations available

Personalised recommendations