Domestic and Foreign Effects on Prices in an Open Economy: The Case of Denmark

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Standard

Domestic and Foreign Effects on Prices in an Open Economy : The Case of Denmark. / Juselius, Katarina.

Testing Exogeneity. red. / Neil R. Ericsson; John S. Irons. Oxford, UK : Oxford University Press, 1994. s. 161-190 (Advanced Texts in Econometrics).

Publikation: Bidrag til bog/antologi/rapport › Bidrag til bog/antologi › Forskning

Harvard

Juselius, K 1994, Domestic and Foreign Effects on Prices in an Open Economy: The Case of Denmark. i NR Ericsson & JS Irons (red), Testing Exogeneity. Oxford University Press, Oxford, UK, Advanced Texts in Econometrics, s. 161-190.

APA

Juselius, K. (1994). Domestic and Foreign Effects on Prices in an Open Economy: The Case of Denmark. I N. R. Ericsson, & J. S. Irons (red.), Testing Exogeneity (s. 161-190). Oxford University Press. Advanced Texts in Econometrics

Vancouver

Juselius K. Domestic and Foreign Effects on Prices in an Open Economy: The Case of Denmark. I Ericsson NR, Irons JS, red., Testing Exogeneity. Oxford, UK: Oxford University Press. 1994. s. 161-190. (Advanced Texts in Econometrics).

Author

Juselius, Katarina. / Domestic and Foreign Effects on Prices in an Open Economy : The Case of Denmark. Testing Exogeneity. red. / Neil R. Ericsson ; John S. Irons. Oxford, UK : Oxford University Press, 1994. s. 161-190 (Advanced Texts in Econometrics).

Bibtex

@inbook{be7ef6e074c611dbbee902004c4f4f50,
title = "Domestic and Foreign Effects on Prices in an Open Economy: The Case of Denmark",
abstract = "Domestic price determination in Denmark is investigated usingthree kinds of macro-economic explanations: (1) internal labor mar­ket theories describing the relation between price and wage inflation,(2) pure monetarist theories describing the effect of excess moneyon the inflation rate, and (3) external theories describing the foreigntransmission effects on a small open economy. The empirical analysismakes use of the multivariate cointegration model, which is based onthe joint analysis of long- and short-run behavior. The deviationsfrom derived underlying steady states in each sector were found tobe the main determinants of the inflation rate. Among these, thedomestic effects were small compared to the foreign effects. The em­pirical results strongly favored a backward-looking behavioral modelin terms of structurally stable parameters as opposed to a forward-looking expectations model. The results stand up as quite strongevidence against the Lucas critiqueDomestic price determination in Denmark is investigated usingthree kinds of macro-economic explanations: (1) internal labor mar­ket theories describing the relation between price and wage inflation,(2) pure monetarist theories describing the effect of excess moneyon the inflation rate, and (3) external theories describing the foreigntransmission effects on a small open economy. The empirical analysismakes use of the multivariate cointegration model, which is based onthe joint analysis of long- and short-run behavior. The deviationsfrom derived underlying steady states in each sector were found tobe the main determinants of the inflation rate. Among these, thedomestic effects were small compared to the foreign effects. The em­pirical results strongly favored a backward-looking behavioral modelin terms of structurally stable parameters as opposed to a forward-looking expectations model. The results stand up as quite strongevidence against the Lucas critique",
author = "Katarina Juselius",
year = "1994",
language = "English",
isbn = "0198774044",
series = "Advanced Texts in Econometrics",
publisher = "Oxford University Press",
pages = "161--190",
editor = "Ericsson, {Neil R.} and Irons, {John S.}",
booktitle = "Testing Exogeneity",
address = "United Kingdom",

}

RIS

TY - CHAP

T1 - Domestic and Foreign Effects on Prices in an Open Economy

T2 - The Case of Denmark

AU - Juselius, Katarina

PY - 1994

Y1 - 1994

N2 - Domestic price determination in Denmark is investigated usingthree kinds of macro-economic explanations: (1) internal labor mar­ket theories describing the relation between price and wage inflation,(2) pure monetarist theories describing the effect of excess moneyon the inflation rate, and (3) external theories describing the foreigntransmission effects on a small open economy. The empirical analysismakes use of the multivariate cointegration model, which is based onthe joint analysis of long- and short-run behavior. The deviationsfrom derived underlying steady states in each sector were found tobe the main determinants of the inflation rate. Among these, thedomestic effects were small compared to the foreign effects. The em­pirical results strongly favored a backward-looking behavioral modelin terms of structurally stable parameters as opposed to a forward-looking expectations model. The results stand up as quite strongevidence against the Lucas critiqueDomestic price determination in Denmark is investigated usingthree kinds of macro-economic explanations: (1) internal labor mar­ket theories describing the relation between price and wage inflation,(2) pure monetarist theories describing the effect of excess moneyon the inflation rate, and (3) external theories describing the foreigntransmission effects on a small open economy. The empirical analysismakes use of the multivariate cointegration model, which is based onthe joint analysis of long- and short-run behavior. The deviationsfrom derived underlying steady states in each sector were found tobe the main determinants of the inflation rate. Among these, thedomestic effects were small compared to the foreign effects. The em­pirical results strongly favored a backward-looking behavioral modelin terms of structurally stable parameters as opposed to a forward-looking expectations model. The results stand up as quite strongevidence against the Lucas critique

AB - Domestic price determination in Denmark is investigated usingthree kinds of macro-economic explanations: (1) internal labor mar­ket theories describing the relation between price and wage inflation,(2) pure monetarist theories describing the effect of excess moneyon the inflation rate, and (3) external theories describing the foreigntransmission effects on a small open economy. The empirical analysismakes use of the multivariate cointegration model, which is based onthe joint analysis of long- and short-run behavior. The deviationsfrom derived underlying steady states in each sector were found tobe the main determinants of the inflation rate. Among these, thedomestic effects were small compared to the foreign effects. The em­pirical results strongly favored a backward-looking behavioral modelin terms of structurally stable parameters as opposed to a forward-looking expectations model. The results stand up as quite strongevidence against the Lucas critiqueDomestic price determination in Denmark is investigated usingthree kinds of macro-economic explanations: (1) internal labor mar­ket theories describing the relation between price and wage inflation,(2) pure monetarist theories describing the effect of excess moneyon the inflation rate, and (3) external theories describing the foreigntransmission effects on a small open economy. The empirical analysismakes use of the multivariate cointegration model, which is based onthe joint analysis of long- and short-run behavior. The deviationsfrom derived underlying steady states in each sector were found tobe the main determinants of the inflation rate. Among these, thedomestic effects were small compared to the foreign effects. The em­pirical results strongly favored a backward-looking behavioral modelin terms of structurally stable parameters as opposed to a forward-looking expectations model. The results stand up as quite strongevidence against the Lucas critique

M3 - Book chapter

SN - 0198774044

T3 - Advanced Texts in Econometrics

SP - 161

EP - 190

BT - Testing Exogeneity

A2 - Ericsson, Neil R.

A2 - Irons, John S.

PB - Oxford University Press

CY - Oxford, UK

ER -

ID: 156226