Modelling inflation in South Africa: A multivariate cointegration analysis

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dc.contributor.authorFedderke, J W
dc.contributor.authorSchaling, E
dc.date.accessioned2016-05-22T15:47:03Z
dc.date.available2016-05-22T15:47:03Z
dc.date.issued2005
dc.date.updated2016-05-22T15:35:41Z
dc.description.abstractWe employ an expectations augmented Phillips curve framework to investigate the link between inflation, unit labour costs, the output gap, the real exchange rate and inflation expectations. Using multivariate cointegration techniques, we find evidence consistent with mark-up behaviour of output prices over unit labour costs. Most importantly, we find that the mark-up in the South African economy is much higher than in the U.S. For South Africa we find a markup of about 30 per cent: three times as high as the 10 per cent markup found for the U.S. Keywords: imperfect competitions, wage-setting, price-setting, inflation, markup, cointegration. JEL Classification: E31, E37, E50en_ZA
dc.identifierhttp://dx.doi.org/10.1111/j.1813-6982.2005.00006.x
dc.identifier.apacitationFedderke, J. W., & Schaling, E. (2005). Modelling inflation in South Africa: A multivariate cointegration analysis. <i>South African Journal of Economics</i>, http://hdl.handle.net/11427/19760en_ZA
dc.identifier.chicagocitationFedderke, J W, and E Schaling "Modelling inflation in South Africa: A multivariate cointegration analysis." <i>South African Journal of Economics</i> (2005) http://hdl.handle.net/11427/19760en_ZA
dc.identifier.citationFedderke, J. W., & Schaling, E. (2005). Modelling inflation in South Africa: a multivariate cointegration analysis. South African Journal of Economics, 73(1), 79-92.en_ZA
dc.identifier.issn0038-2280en_ZA
dc.identifier.ris TY - Journal Article AU - Fedderke, J W AU - Schaling, E AB - We employ an expectations augmented Phillips curve framework to investigate the link between inflation, unit labour costs, the output gap, the real exchange rate and inflation expectations. Using multivariate cointegration techniques, we find evidence consistent with mark-up behaviour of output prices over unit labour costs. Most importantly, we find that the mark-up in the South African economy is much higher than in the U.S. For South Africa we find a markup of about 30 per cent: three times as high as the 10 per cent markup found for the U.S. Keywords: imperfect competitions, wage-setting, price-setting, inflation, markup, cointegration. JEL Classification: E31, E37, E50 DA - 2005 DB - OpenUCT DP - University of Cape Town J1 - South African Journal of Economics LK - https://open.uct.ac.za PB - University of Cape Town PY - 2005 SM - 0038-2280 T1 - Modelling inflation in South Africa: A multivariate cointegration analysis TI - Modelling inflation in South Africa: A multivariate cointegration analysis UR - http://hdl.handle.net/11427/19760 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/19760
dc.identifier.urihttp://onlinelibrary.wiley.com/doi/10.1111/j.1813-6982.2005.00006.x/abstract
dc.identifier.vancouvercitationFedderke JW, Schaling E. Modelling inflation in South Africa: A multivariate cointegration analysis. South African Journal of Economics. 2005; http://hdl.handle.net/11427/19760.en_ZA
dc.languageengen_ZA
dc.publisherWileyen_ZA
dc.publisher.departmentCentre for Social Science Research(CSSR)en_ZA
dc.publisher.facultyFaculty of Humanitiesen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.sourceSouth African Journal of Economicsen_ZA
dc.source.urihttp://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1813-6982
dc.subject.otherimperfect competitions
dc.subject.otherwage-setting
dc.subject.otherprice-setting
dc.subject.otherinflation
dc.subject.othermarkup
dc.titleModelling inflation in South Africa: A multivariate cointegration analysisen_ZA
dc.typeJournal Articleen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceArticleen_ZA
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