CEU Electronic Theses and Dissertations, 2009
| Author | Piovarciova, Barbora |
|---|---|
| Title | Unit Labor Costs and Price Level in Slovakia: An Application of Cointegration Analysis |
| Summary | The thesis is empirical study of unit labor costs and price level in Slovakia within the cointegration analysis framework. The sample employed in the study covers quarterly data over period 1995-2008. Unit labor costs series for 7 sectors are found to be I(1) process even after allowing for the presence of one structural break. Same result applies also to Consumer price index and Producer price index in Manufacturing and Industry. The results are robust to either using seasonal adjusted data or modeling seasonality using deterministic seasonal dummies. Employing Johansen methodology cointegration relationship between four sectors and CPI are found .Interestingly one of the sectors is Total economy and others are concerned with service provision. Weak exogenity tests suggest that unit labor costs are adjusting to maintain the long run relationship, this results is however sensitive to the exact model specification. Granger causality tests imply causality running from unit labor cost to prices as well as from prices to unit labor costs. However, the information value is contained only in disequilibrium error. These results are sensitive to treatment of seasonality. |
| Supervisor | Horváth, Július |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2009/piovarciova_barbora.pdf |
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