Wage and Price Setting Behaviour of Lithuanian Firms

Virbickas, Ernestas; Vetlov, Igor; Félix, Ricardo Mourinho; Frey, Laure; Hledik, Tibor; Jakab, Zoltán; Papadopoulou, Niki; Reiss, Lukas; Schneider, Martin

doi:10.2139/ssrn.1603900

Cited by 4 publications

(2 citation statements)

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“…Empirical evidence has shown price and wage-setting practices are quite heterogeneous and changes in these variables are not synchronized (e.g. Copaciu et al, 2010;Virbickas, 2010;Marques et al, 2010;Druant et al, 2009). These results could affect the size and the persistence of monetary policy shocks that affect output (Gali, 1994;Rotemberg andWoodford, 1999 andTaylor, 1999).…”

Section: Introductionmentioning

confidence: 99%

“…They also investigated the relationship between the timing of price and wage revisions and found the presence of some synchronization between price and wage changes for half the firms. Virbickas (2010) researched the wage and price-setting behavior of Lithuanian firms. The author found that Lithuanian firms adjust wages more than once a year, whereas adjustments in other countries within the WDN generally take place once a year.…”

Section: Introductionmentioning

confidence: 99%

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Wage Adjustment Practices and the Link between Price and Wages: Survey Evidence from Colombian Firms

2012

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This paper explores firms’ wage adjustment practices in the Colombian formal labor market; specifically, the timing and frequency of wage increases, as well as the link between wage and price changes. We use a survey of 1,305 firms belonging to all economic sectors. The results show that most firms adjust base wages annually, increases were concentrated around observed inflation and none of the firms cut wages. Moreover, factors associated with the performance of firms and workers alike are the main determinants of wage adjustments. The link between wages and price changes is stronger in sectors where labor costs represent a higher share of total costs and in firms operating in sectors with higher labor productivity.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Wage Adjustment Practices and the Link between Price and Wages: Survey Evidence from Colombian Firms

2012

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Price‐Setting Behavior of Korean Firms^†

Song¹,

Yie²,

Park³

2020

Asian Economic Journal

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This paper investigates a pattern of price revision by firms in Korea and sheds light on the cause of price stickiness by providing reliable statistical estimates for calibration of the parameters of the widely‐used macro‐models. Based on firm‐level survey data and using a probit model, we identify the firm characteristics or market conditions that discourage firms from carrying out state‐dependent price adjustment. We also estimate the factors driving firms to engage in state‐dependent adjustment rather than wait until the next scheduled revision under three different shocks: demand, general cost and exchange rate shocks. We find a few interesting features, as follows. First, price revision by Korean firms tends to be time‐dependent rather than state‐dependent, with a sizable dispersion across sectors and firm sizes. Second, the pattern of price revision in Korea is not significantly different from that in selected advanced economies. Third, the reason why firms favor time‐dependent price adjustments appears to be endogenous, accounted for by a number of market institution variables. Fourth, in response to shocks, Korean firms tend to wait until the next periodically scheduled revision rather than make a state‐dependent price adjustment, unless marginal costs are affected significantly by the shock, and state‐dependent revisions are often significantly delayed when they do occur.

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Stability Policy During Economic Downturn: Institutional and Interventionalistic Aspects

Paliulytė

2010

ECO

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The issue of stable policy became extremely relevant during the recession. Stable policy encompasses recovery of the lost equilibrium, prevention of the undesirable situation and assurance of sustainable economic development. Two competitive decisions of stable policy – intervention and institutional – can be accentuated. Intervention strategy means supply stimulation and balance recovery through fiscal and monetary policy. Institutional stable policy stresses the prevention of unwanted situations through creating a resilient institutional economic structure and freeing the market self-regulation mechanism. The article compares both strategies, analyzes their consequences, influence on the development and depth of the crisis, and possibilities of the national adaptation mechanism.

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Wage and Price Setting Behaviour of Lithuanian Firms

Cited by 4 publications

References 92 publications

Wage Adjustment Practices and the Link between Price and Wages: Survey Evidence from Colombian Firms

Wage Adjustment Practices and the Link between Price and Wages: Survey Evidence from Colombian Firms

Price‐Setting Behavior of Korean Firms^†

Stability Policy During Economic Downturn: Institutional and Interventionalistic Aspects

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Wage and Price Setting Behaviour of Lithuanian Firms

Cited by 4 publications

References 92 publications

Wage Adjustment Practices and the Link between Price and Wages: Survey Evidence from Colombian Firms

Wage Adjustment Practices and the Link between Price and Wages: Survey Evidence from Colombian Firms

Price‐Setting Behavior of Korean Firms†

Stability Policy During Economic Downturn: Institutional and Interventionalistic Aspects

Contact Info

Product

Resources

About

Price‐Setting Behavior of Korean Firms^†