Browsing by Author "Scordilis, Steven"

Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    Open Access
    Long run determination of inflation in South Africa
    (2008) Scordilis, Steven; Fedderke, Johannes
    This paper employs multivariate estimation techniques in an expectations augmented Phillips curve framework to investigate long run determinants of inflation. By separating unit labour costs in nominal wages and labour productivity in an extension of the work by Fedderke and Schaling (2005), the labour productivity effect is shown to impact prices negatively and nominal wages positively. In addition, the implicit assumption of nominal wages and labour productivity moving in a one-for one fashion made in using unit labour costs is a poor one. The paper makes a further contribution by comparing mark-ups of the non-agricultural sectors to the manufacturing sector and evidence of a reduced mark-up in the non-agricultural sectors is apparent.