When prices are inflexible, real variables like production and inventories must bear the brunt of responding to cost and demand shocks. In these circumstances, one expects to observe rather more variation in quantities than in prices, and that is, in fact, what we observe in the data. To explain...

The paper presents empirical evidence on wage formation in Norway using annual time series data for manufacturing industry. First, we show that long-run effects of consumer prices and taxes depend strongly on the exact definition of the empirical variables. Using the implicit factor income...

This paper examines the change in union wage differentials in Britain between 1984 and 1990, a period of considerable legislative change and marked decline in unionization. Small falls in union differentials are found for manual workers, together with a sharp decline in the premium associated...

The inflation process in Turkey is investigated utilizing the multivariate cointegration model that is based on the joint analysis of long-run and short-run behavior. Excess demand in each sector--monetary, government, international and labor--as measured by the deviation from the long-run...

This paper uses a noncooperative bargaining model to motivate an empirical analysis of the determinants of household expenditures. Drawing on a national household survey from the Cote d'Ivoire, the authors find that raising women's share of cash income increases the budget share of food and...

In this paper we test a model of per capita spending for government services developed by Dao (1994) using data from a set of 105 countries. We are able to show that the income elasticity of the demand for public services depends on the type of devices and on how developed (economically or...

This paper looks at the relationship between supervision and pay using British data that refer to a different institutional context. The analysis is based on information provided by the British New Earnings Survey over the period 1975-82. The empirical investigation reveals that the relationship...

When the joint density of data can be factorized into conditional and marginal densities, the Hausman (1978) test can be used for diagnosing misspecifications of these densities. However, since common covariance estimates of the difference of the two estimators used in the Hausman test need not...

Cross-national data show wives of unemployed men to have lower participation rates than wives of employed men. Employment status of husbands may proxy characteristics of wives associated with low participation or incentives for wives may be affected by income-testing of unemployment benefit of...

The determinants of CEO compensation within the U.K. Building Society sector are investigated. Using an unbalanced panel data set for the period 1986-90, the authors find only weak support for the existence of a positive performance and CEO remuneration. In contrast, they find age to be an...