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Estimation of nonlinear wage and inflation vectors with Markov switching technique
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Akram Hasannejad Koshki1   , Mahdi Moradi2 , Sima Eskandari Sabzi3 |
1- Ph.D. Candidate, Department of Economics, Miyaneh Branch, Islamic Azad University, Miyaneh, Iran
2- Assistant Professor, Department of Economics, Payame Noor UniversityTehran, Iran (Corresponding Author) , moradi@pnu.ac.ir
3- Assistant Professor, Department of Economics, Miyaneh Branch, Islamic Azad University, Miyaneh, Iran |
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Abstract: (220 Views) |
Today, productivity is considered a necessity for economic growth and improving the standard of living and welfare of a country. Since the early 1970s, productivity has been one of the most important topics that has attracted special attention at the level of organizations and countries. In fact, the amount and rate of productivity growth in each country has a significant impact on the trend of macroeconomic variables at the global level. Many factors affect productivity, among which the role of wages and inflation can be very important. Quantitative indicators of inflation, wages and productivity alone are not informative and effective. For this reason, one of the scientific methods for studying economic data is their statistical modeling using non-linear tools such as the Markov switching technique. While examining the advantages of the Markov switching technique, this article uses this method in the form of an econometric model in the field of investigating the nonlinear effects of wages and inflation on labor productivity in 17 selected developing countries during the period from 2006 to 2020. The obtained results show that in both boom and recession regimes, the intersectional effects of wages and inflation have a negative effect on labor productivity.
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Article number: 20 |
| Keywords: Wages, Inflation, Labor Productivity, Markov Switching. |
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Full-Text [PDF 979 kb]
(52 Downloads)
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Article type: Research |
Subject:
Special
Received: 2024/06/10 | Accepted: 2024/08/26 | Published: 2025/05/26
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