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Wage Growth and Inflation in the United States: Further Evidence from Johansen's Cointegration Approach

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  • Victor Ukpolo

Abstract

This paper examines the relationship between wage growth and inflation in the United States. It has been hypothesized that an autonomous wage change represent a significant component of inflation determination. We adopted the recent technique of unit-root testing and Johansen's maximum likelihood procedure to show that, although, wage growth has some long-run impact on inflation pressures, it represents an insignificant determinant of inflation.

Suggested Citation

  • Victor Ukpolo, 1997. "Wage Growth and Inflation in the United States: Further Evidence from Johansen's Cointegration Approach," The American Economist, Sage Publications, vol. 41(1), pages 53-58, March.
    • Handle: RePEc:sae:amerec:v:41:y:1997:i:1:p:53-58
    DOI: 10.1177/056943459704100106
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    References listed on IDEAS

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