Feeding the global VAR with theory: is German wage moderation to blame for European imbalances? Beiträge zur Jahrestagung des Vereins für Socialpolitik 2013: Wettbewerbspolitik und Regulierung in einer globalen Wirtschaftsordnung
"This paper analyses the importance of German wage moderation in the context of European imbalances. Using information from a New Keynesian small open economy model with labor market frictions, we derive sign restrictions for a wage markup shock. This information enables us to identify a German...
| Main Author: | |
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| Institution: | ETUI-European Trade Union Institute |
| Format: | TEXT |
| Language: | English |
| Published: |
Leibniz
2013
ZBW |
| Subjects: | |
| Online Access: | https://www.labourline.org/KENTIKA-19110771124919389539-Feeding-the-global-VaR-with-th.htm |
| _version_ | 1771659897760382976 |
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| author | Bettendorf, Timo |
| author_facet | Bettendorf, Timo |
| collection | Library items |
| description | "This paper analyses the importance of German wage moderation in the context of European imbalances. Using information from a New Keynesian small open economy model with labor market frictions, we derive sign restrictions for a wage markup shock. This information enables us to identify a German wage markup shock by imposing restrictions on the impulse response functions of German variables in a Global VAR model. We find that negative German wage markup shocks do generally cause an improvement of the domestic trade balance and a deterioration of foreign trade balances in the Euro Area. However, they account only for a limited proportion of trade balance forecast error variances. Hence, German wage moderation cannot be the lone driver of European imbalances." |
| format | TEXT |
| geographic | Germany |
| id | 19110771124919389539_b07efdc523144b6c800ae43f03d6bf78 |
| institution | ETUI-European Trade Union Institute |
| is_hierarchy_id | 19110771124919389539_b07efdc523144b6c800ae43f03d6bf78 |
| is_hierarchy_title | Feeding the global VAR with theory: is German wage moderation to blame for European imbalances? Beiträge zur Jahrestagung des Vereins für Socialpolitik 2013: Wettbewerbspolitik und Regulierung in einer globalen Wirtschaftsordnung |
| language | English |
| physical | 22 p. Digital |
| publishDate | 2013 |
| publisher | Leibniz ZBW |
| spellingShingle | Bettendorf, Timo economic growth trade wage policy Feeding the global VAR with theory: is German wage moderation to blame for European imbalances? Beiträge zur Jahrestagung des Vereins für Socialpolitik 2013: Wettbewerbspolitik und Regulierung in einer globalen Wirtschaftsordnung |
| thumbnail | https://www.labourline.org/Image_prev.jpg?Archive=109613592789 |
| title | Feeding the global VAR with theory: is German wage moderation to blame for European imbalances? Beiträge zur Jahrestagung des Vereins für Socialpolitik 2013: Wettbewerbspolitik und Regulierung in einer globalen Wirtschaftsordnung |
| topic | economic growth trade wage policy |
| url | https://www.labourline.org/KENTIKA-19110771124919389539-Feeding-the-global-VaR-with-th.htm |