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Real Wage and Nominal Shock: Evidence from Pacific-Rim Countries

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  • Doh-Khul Kim

Abstract

This paper examines aggregate real-wage responses to nominal shocks in four Pacific-rim countries utilizing a vector autoregression (VAR) framework. In this study, positive real-wage responses are found in Japan and New Zealand whereas negative responses are found in Australia and Korea. In the transmission of nominal shocks to real economic activities, the findings show a sticky-price model to be more important in Japan and New Zealand, while a sticky-wage model plays the more dominant role in Australia and Korea. Copyright International Atlantic Economic Society 2005

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  • Doh-Khul Kim, 2005. "Real Wage and Nominal Shock: Evidence from Pacific-Rim Countries," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 11(3), pages 249-255, August.
    • Handle: RePEc:kap:iaecre:v:11:y:2005:i:3:p:249-255:10.1007/s11294-005-6614-5
    DOI: 10.1007/s11294-005-6614-5
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    Cited by:

    1. Nicholas Apergis & Alexandros Panethimitakis, 2011. "Stylised facts of Greek business cycles: new evidence from aggregate and across regimes data," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 3(2), pages 147-165.

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    Keywords

    E4; E5;

    JEL classification:

    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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