Employment Policies, Wage Formation and Trade Union Behavior in a Small Open Economy

1983 ◽  
pp. 213-241
Author(s):  
Lars Calmfors
Keyword(s):  
Open Economy ◽  
Trade Union ◽  
Small Open Economy ◽  
Employment Policies ◽  
Wage Formation

scholarly journals Cointegration and Structure in Norwegian Wage–Price Dynamics

Econometrics ◽  
2020 ◽  
Vol 8 (3) ◽  
pp. 29
Author(s):  
Marit Gjelsvik ◽  
Ragnar Nymoen ◽  
Victoria Sparrman
Keyword(s):  
Open Economy ◽  
Manufacturing Industry ◽  
Small Open Economy ◽  
Simultaneous Equation ◽  
Wage Bargaining ◽  
Cointegration Analysis ◽  
Macroeconomic Stabilization ◽  
Wage Formation ◽  
Equation Modelling ◽  
Simultaneous Equation Modelling

Wage coordination plays an important role in macroeconomic stabilization. Pattern wage bargaining systems have been common in Europe, but in different forms, and with different degrees of success in terms of actual coordination reached. We focus on wage formation in Norway, a small open economy, where it is custom to regard the manufacturing industry as the wage leader. We estimate a model of wage formation in manufacturing and in two other sectors. Deciding cointegration rank is an important step in the analysis, economically as well statistically. In combination with simultaneous equation modelling, the cointegration analysis provides evidence that collective wage negotiations in manufacturing have defined wage norms for the rest of the economy over the period 1980(1)–2014(4).

The long-run stability of a small, open economy under crawling peg regime

2002 ◽  
Vol 52 (1) ◽  
pp. 57-78
Author(s):  
S. Çiftçioğlu
Keyword(s):  
Exchange Rate ◽  
Open Economy ◽  
Risk Premium ◽  
Small Open Economy ◽  
Exchange Rate Policy ◽  
Price Stability ◽  
Output Stability ◽  
Long Run ◽  
The Exchange Rate ◽  
The Impact

The paper analyses the long-run (steady-state) output and price stability of a small, open economy which adopts a “crawling-peg” type of exchange-rate regime in the presence of various kinds of random shocks. Analytical and simulation results suggest that with the exception of money demand shocks, an exchange rate policy which involves a relatively higher rate of indexation of the exchange rate to price level is likely to lead to the worsening of price stability for all types of shocks. On the other hand, the impact of adopting such a policy on output stability depends on the type of the shock; for policy shocks to the exchange rate and shocks to output demand, output stability is worsened whereas for the shocks to risk premium of domestic assets, supply price of domestic output and the wage rate, better output stability is achieved in the long run.

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