Wage-Price Flexibility, Market Power, and the Cyclical Behavior of Real Wages, 1959-1980

1992 ◽  
Vol 107 (4) ◽  
pp. 1437-1449 ◽  
Author(s):  
D. M. Garman ◽  
D. J. Richards
Keyword(s):  
Market Power ◽  
Real Wages ◽  
Price Flexibility ◽  
Cyclical Behavior

Linking bank regulatory capital buffer to business cycle fluctuations

2018 ◽  
Vol 45 (3) ◽  
pp. 565-585 ◽  
Author(s):  
Kolade Sunday Adesina ◽  
John Muteba Mwamba
Keyword(s):  
Panel Data ◽  
Market Power ◽  
Commercial Banks ◽  
Basel Iii ◽  
Regulatory Capital ◽  
Revenue Diversification ◽  
African Countries ◽  
Data Set ◽  
Content Type ◽  
Cyclical Behavior

Purpose The purpose of this paper is to assist bank regulators in Africa who are currently considering the implementation of Basel III countercyclical capital buffer (CCB) requirement. Design/methodology/approach Using a panel data set of 129 commercial banks operating in 14 African countries over the period 2004–2014, this paper estimates the system generalized method of moments regression to examine the impact of business cycle on banks’ regulatory capital buffers and attempts to identify the influence of bank revenue diversification, market power and cost of funding (CF) on bank regulatory capital buffers. It further carries out some robustness analyses using a panel data set of 257 commercial banks in 23 African countries over the period 2004–2014. Findings The results show that higher regulatory capital buffers are associated with higher market power, higher revenue diversification and higher CF. Additionally, the results show significant evidence of procyclical behavior of bank capital buffers (BUFs) in the sampled countries. Practical implications The results of this study suggest that African banking systems are not exposed to contagion and systemic risks arising from countercyclical movements of BUFs to the real economy. Therefore, this study does not support the implementation of the Basel III CCB requirement in the sampled African countries. Originality/value Considering that the results of existing studies on the cyclical behavior of BUFs are inconclusive, there is value in studying the cyclical movements of bank regulatory capital buffers in a set of countries that has not been analyzed before. Toward this direction, this is the first empirical study focusing on the cyclical behavior of bank regulatory capital buffers in Africa. Besides examining the cyclical behavior of bank regulatory capital buffers, this paper further investigates the effects of bank revenue diversification, market power and CF on bank regulatory capital buffers.

Why Does the Cyclical Behavior of Real Wages Change Over Time?

2004 ◽  
Vol 94 (4) ◽  
pp. 836-856 ◽  
Author(s):  
Kevin X. D Huang ◽  
Zheng Liu ◽  
Louis Phaneuf
Keyword(s):  
Interwar Period ◽  
Nominal Wage ◽  
Cycle Model ◽  
Real Wages ◽  
Output Structure ◽  
Price Rigidities ◽  
Wage Cyclicality ◽  
Cyclical Behavior ◽  
Business Cycle Model ◽  
Over Time

The cyclical behavior of real wages has evolved from mildly countercyclical during the interwar period to modestly procyclical in the postwar era. This paper presents a general-equilibrium business-cycle model that helps explain the evolution. In the model, changes in the real wage cyclicality arise from interactions between nominal wage and price rigidities and an evolving input-output structure.

scholarly journals Degree of monopoly and market power vs. price flexibility in Polish economy: empirical analysis based on COICOP classification

2020 ◽  
Vol 11 (1) ◽  
pp. 11-28
Author(s):  
Paweł Umiński
Keyword(s):  
Market Power ◽  
Empirical Studies ◽  
Value Added ◽  
Statistical Dependence ◽  
Price Variation ◽  
Aggregated Data ◽  
Classical Models ◽  
Price Flexibility ◽  
Polish Economy ◽  
Number Of Publications

Research background: The issue of price flexibility is crucial in the economy both in the aspect of company theory and its macroeconomic consequences. In a number of publications, the sources of variable price flexibility are linked to the market power of enterprises as well as the market structure that has developed in a given branch. It is difficult to indicate empirical studies that would state clearly whether price flexibility depends on the degree of monopoly or the market power of enterprises. This paper concerns that particular field of study. Purpose of the article: The purpose of the paper is to present the statistical dependence of the degree of monopoly and market power vs. price flexibility in the economy. Methods: The analysis has been conducted using aggregated data concerning Polish economy in the period from 2001 to 2013, based on COICOP. The degree of monopoly indicator was the average number of companies in a given branch, following the classical models of market structures; the market power indicator was the average net revenue from sales of products per enterprise representing a given branch; the measure of price flexibility was the probability of price variation estimated using the Calvo pricing model. It is, therefore, a frequency-based approach to price flexibility. Statistical dependence was analyzed using the Spearman's rank and Kendall’s tau correlation coefficient and simple regression models. Findings & Value added: The outcomes indicate that in the case of Poland in the analyzed period there is no statistically significant relation between the degree of monopoly and price flexibility and also between the market power and price flexibility. Thus, the findings of the analysis support the studies which reject the assumption that higher degree of monopoly or higher market power of an enterprise is followed by less flexible prices.

Why Does the Cyclical Behavior of Real Wages Change Over Time?

2003 ◽  
Author(s):  
Kevin X.D. Huang ◽  
Zheng Liu ◽  
Louis Phaneuf
Keyword(s):  
Real Wages ◽  
Change Over Time ◽  
Cyclical Behavior ◽  
Over Time
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