The behavior of real wages over the business cycle: Evidence from structural time series modeling and Kalman filter.

Title: The behavior of real wages over the business cycle: Evidence from structural time series modeling and Kalman filter.
Identifier: AAI9224862
identifier: 9224862
Creator: Topyan, Kudret.
Contributor: Adviser: Michael Grossman
Date: 1992
Language: English
Publisher: City University of New York.
Subject: Economics, General
Abstract: The standard Keynesian macro model attributes business cycles to demand disturbances and predicts that real wages are countercyclical given a stable labor demand curve in the short run, under the assumption of sticky nominal wages. The present study employs a structural time series model where the trend of real wage rate is estimated through Kalman Filter. This method enables us to capture the stochastic nature of the series more accurately, permitting the estimation of more reliable coefficients than can be obtained using traditional methods. The structural time series modeling approach obviates the need to specify whether the trends are deterministic or stochastic prior to the analysis. The model formulates the real wage series in terms of its trend, seasonal, and irregular components. The estimation results for various time periods reveal that there is a robust systematic pattern which makes real wages pro- or countercyclical.
Type: dissertation
Source: PQT Legacy CUNY.xlsx
degree: Ph.D.

Media: The behavior of real wages over the business cycle: Evidence from structural time series modeling and Kalman filter.