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Testing for the Price‐ and Wage‐Setting Model in Belgium Using Multivariate Cointegration Tests
Author(s) -
Hecq Alain,
Mahy Benoît
Publication year - 1997
Publication title -
labour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.403
H-Index - 34
eISSN - 1467-9914
pISSN - 1121-7081
DOI - 10.1111/1467-9914.00033
Subject(s) - cointegration , multivariate statistics , economics , wage , econometrics , multivariate analysis , mathematics , statistics , labour economics
Using multivariate cointegration tests based on Johansen's approach, this paper tests for the existence of long‐run relationships between real wages and other explaining variables in Belgium. We retain two cointegrating vectors which can refer to wage and price setting behaviours.