Domestic and foreign effects on prices in an open economy: the case of Denmark

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Domestic and foreign effects on prices in an open economy : the case of Denmark. / Juselius, Katarina.

I: Journal of Policy Modeling, Bind 14, Nr. 4, 1992, s. 401-428.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Harvard

Juselius, K 1992, 'Domestic and foreign effects on prices in an open economy: the case of Denmark', Journal of Policy Modeling, bind 14, nr. 4, s. 401-428. https://doi.org/10.1016/0161-8938(92)90014-4

APA

Juselius, K. (1992). Domestic and foreign effects on prices in an open economy: the case of Denmark. Journal of Policy Modeling, 14(4), 401-428. https://doi.org/10.1016/0161-8938(92)90014-4

Vancouver

Juselius K. Domestic and foreign effects on prices in an open economy: the case of Denmark. Journal of Policy Modeling. 1992;14(4):401-428. https://doi.org/10.1016/0161-8938(92)90014-4

Author

Juselius, Katarina. / Domestic and foreign effects on prices in an open economy : the case of Denmark. I: Journal of Policy Modeling. 1992 ; Bind 14, Nr. 4. s. 401-428.

Bibtex

@article{e34e2ea074c611dbbee902004c4f4f50,
title = "Domestic and foreign effects on prices in an open economy: the case of Denmark",
abstract = "Domestic price determination in Denmark is investigated using three kinds of macroeconomic explanations: (1) internal labor market theories describing the relation between price and wage inflation, (2) pure monetarist theories describing the effect of excess money on the inflation rate. and (3) external theories describing the foreign transmission effects on a small open economy. The empirical analysis makes use of the multivariate cointegration model, which is based on the joint analysis of long- and short-run behavior. The deviations from derived underlying steady states in each sector were found to be the main determinants of the inflation rate. Among these, the domestic effects were small compared to the foreign effects. The empirical results strongly favored a backward-looking behavioral model in terms of structurally stable parameters as opposed to a forward-looking expectations model. The results stand up as quite strong evidence against the Lucas critique",
author = "Katarina Juselius",
year = "1992",
doi = "10.1016/0161-8938(92)90014-4",
language = "English",
volume = "14",
pages = "401--428",
journal = "Journal of Policy Modeling",
issn = "0161-8938",
publisher = "Elsevier",
number = "4",

}

RIS

TY - JOUR

T1 - Domestic and foreign effects on prices in an open economy

T2 - the case of Denmark

AU - Juselius, Katarina

PY - 1992

Y1 - 1992

N2 - Domestic price determination in Denmark is investigated using three kinds of macroeconomic explanations: (1) internal labor market theories describing the relation between price and wage inflation, (2) pure monetarist theories describing the effect of excess money on the inflation rate. and (3) external theories describing the foreign transmission effects on a small open economy. The empirical analysis makes use of the multivariate cointegration model, which is based on the joint analysis of long- and short-run behavior. The deviations from derived underlying steady states in each sector were found to be the main determinants of the inflation rate. Among these, the domestic effects were small compared to the foreign effects. The empirical results strongly favored a backward-looking behavioral model in terms of structurally stable parameters as opposed to a forward-looking expectations model. The results stand up as quite strong evidence against the Lucas critique

AB - Domestic price determination in Denmark is investigated using three kinds of macroeconomic explanations: (1) internal labor market theories describing the relation between price and wage inflation, (2) pure monetarist theories describing the effect of excess money on the inflation rate. and (3) external theories describing the foreign transmission effects on a small open economy. The empirical analysis makes use of the multivariate cointegration model, which is based on the joint analysis of long- and short-run behavior. The deviations from derived underlying steady states in each sector were found to be the main determinants of the inflation rate. Among these, the domestic effects were small compared to the foreign effects. The empirical results strongly favored a backward-looking behavioral model in terms of structurally stable parameters as opposed to a forward-looking expectations model. The results stand up as quite strong evidence against the Lucas critique

U2 - 10.1016/0161-8938(92)90014-4

DO - 10.1016/0161-8938(92)90014-4

M3 - Journal article

VL - 14

SP - 401

EP - 428

JO - Journal of Policy Modeling

JF - Journal of Policy Modeling

SN - 0161-8938

IS - 4

ER -

ID: 158669