Melbourne Institute of Applied Economic and Social Research - Research Publications

Permanent URI for this collection

http://hdl.handle.net/11343/414

Filters

2000 - 2003 2
2
Reset filters

Settings
Statistics
Citations
Author: Fry, Tim × End date: 2009 × Start date: 2000 × Subject: Inflation ×

Search Results

Now showing 1 - 2 of 2
  • Item
    Thumbnail Image
    Conflict inflation: estimating the contributions to wage inflation in Australia during the 1990s.
    Fry, Tim R. L. ; Webster, Elizabeth ( 2003-03)
    One of the major emerging macroeconomic problems during the century has been the tendency for inflation to accelerate under prolonged periods of full employment. According to Isaac (1977) and Kaldor (1996, 5th Lecture), this arises from the process of wage determination common to most western economics. They argue that there are three major objectives of wage earners that are in competition with one another. First, the desire to maintain relativities; secondly, the desire to have a 'fair' share of companies profits; and thirdly, a reluctance to allow any encroachment on achieved standards due to unfavourable (exogenous) events. If companies have differing rates of profit then the first objective will conflict with the second. If there are adverse changes the terms of trade, then the third objective will cause inflation. This paper tests how well the three objectives of wage earners cited above in the context of their power to effect these objectives, explains wage inflation in Australia using a times series of micro wage rate rates for detailed occupations and industries for the period 1989 to 2000. We find that wages are sensitive to the three major objectives, but not occupational unemployment rates.
  • Item
    Thumbnail Image
    A Model for Ordered Data with Clustering of Observations
    Fry, Tim R. L. ; Harris, Mark N. ( 2000-01)
    There is no qualitative dependent model that can simultaneously account for data sets in which the variable of interest has both a multi-modal distribution and is potentially ordered. Such a multimodal distribution may be the result of individuals being captive to particular choices. Such a case arises when there is digit preferencing (particular numbers, such as 0, 5 and 101 are often favored in many survey-based data sets). This paper introduces a new discrete choice model, the Digit Ordered Extreme Value (DOGEV), that does account for both ordering and digit preferencing in the data, and applies it to an Australian Inflationary Expectations data set.