Browsing by Subject "palkat"

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  • Holm, Pasi; Honkapohja, Seppo; Koskela, Erkki (1990)
    Bank of Finland Research Discussion Papers 24/1990
    The paper formulates a model of wage determination in accordance with the notion of a monopoly union determining wages after which the firm decides on employment. The novelty is to incorporate investment and capital decisions by firms. In the theoretical part the subgame-perfect Nash equilibrium and its comparative statics for wages, capital stock and employment are characterized in various cases.
  • Schmöller, Michaela (2013)
    Suomen Pankki. BoF online 7/2013
    In the wake of the recent economic crisis, unemployment rates in many countries have notably increased and the question of how to promote employment and combat unemployment has become a central and difficult matter for policy-makers. In the light of these challenges, Germany is commonly considered a role model for tackling the problem of unemployment. Even as recently as a decade ago, Germany faced persistently high unemployment and its labour market institutions were regarded as a symbol of inflexibility. Today, the unemployment rate in Germany is remarkably low and not even the vast GDP drop in the recent 'Great Recession' has hampered this exceptional labour market performance. This striking change in the German labour market even led to the Nobel Prize winner Paul Krugman coining the term 'German job miracle' in order to describe the evolution of the German labour market. The aim of this study is to shed light on this 'job miracle' in Germany.
  • Bank of Finland (1972)
    Bank of Finland. Series D 29
    This is a report on the research project begun in 1970 to construct and simulate an econometric model for Finland. The goals of the project and the structure of the model as well as the reasoning behind the specification of the equations are discussed in this report. More detailed reports on the various blocks of the model in addition to the results of the first simulations and forecast experiments are to be published later in 1972 and in 1973.
  • Rantala, Olavi (1986)
    Suomen Pankki. B = Bank of Finland. B 40
    1 INTRODUCTION 7 2 DEMAND FOR HOUSING IN THE LIFE CYCLE MODEL OF CONSUMER BEHAVIOUR 11 2.1 Introduction 11 2.2 A finite horizon model 14 2.3 An infinite horizon model 18 2.4 The effects of transaction and moving costs on the demand for housing and saving 20 2.5 The effect of progressive income taxation on home-ownership and tenure choice 23 3 DEMAND FOR HOUSING AND PORTFOLIO CHOICE UNDER UNCERTAINTY 27 3.1 Introduction 27 3.2 The effect of asset price uncertainty on consumption and demand for housing 28 3.3 The implications of housing as a necessity for the portfolio distribution 36 3.4 Demand for housing under inflation and income uncertainty 38 3.5 Hedging against inflation risk 48 3.6 The determination of housing prices and rents in a partial equilibrium 49 4 CREDIT AND RENTAL MARKET IMPERFECTIONS AND THE HOUSING INVESTMENT PROCESS 53 4.1 Introduction 53 4.2 Tenure choice in imperfect capital and rental markets 56 4.3 The effect of an expected borrowing constraint on consumption and demand for owner-occupied housing stock 59 4.4 The demand for rental housing and saving for a house purchase 65 4.5 Implications for the household portfolio distribution 69 5 HOUSING MARKET ADJUSTMENT UNDER PERFECT FORESIGHT CONDITIONS 73 5.1 Introdution 73 5.2 Consumer behaviour and price determination on the demand side of the housing market 74 5.3 Flow supply in the housing market 79 5.4 The dynamics of price and quantity adjustment in the housing market 80 5.5 Changes in the steady state housing stock and house prices 84 5.6 Empirical implications 87 6 CONCLUDING REMARKS AND A REFERENCE TO FINNISH HOUSEHOLDS' PORTFOLIO DISTRIBUTIONS 90 APPENDICES 95 BIBLIOGRAPHY 113
  • Molander, Ahti (1969)
    Suomen Pankin taloustieteellisen tutkimuslaitoksen julkaisuja. B = Bank of Finland institute for economic research. B 31
    Preface 7 1. INTRODUCTION 9 2. BACKGROUND OF THE STUDY 12 2. 1. The Problem in Historical Perspective 12 2. 2. The Study of Inflation after the Second World War 15 3. THE PURPOSE AND BASIC MODEL OF THE PRESENT STUDY 19 3. 1. Choice of the Frame of Reference 19 3. 2. The Purpose of the Study 21 3. 3. The Basic Model 24 4. DERIVATION OF HYPOTHESES 30 4. 1. Determination of the Price Level 30 4. 2. Determination of the Wage Level 37 4. 3. The Demand for Labour 42 4. 4. The Supply of Labour 46 4. 5. Excess Demand in the Commodity Market 48 5. EMPIRICAL PARTIAL ANALYSIS 53 5. 1. General Remarks 53 5. 2. The Price Equation 54 5. 3. The Earnings Level Equation 59 5. 4. The Activity Equation 63 5. 5. A Note on Wage Drift 64 5. 6. The Negotiated Wage Rates Equation 65 5. 7. The Wage Drift Equation 66 5. 8. The Demand for Labour Equation 69 5. 9. The Supply of Labour Equation 70 5. 10. A Summary of the Partial Single-Eguation Analysis 72 6. SIMULTANEOUS ANALYSIS 73 6. 1. Combined Hypotheses and Simultaneous Estimation 73 6. 2. On the Dynamic Properties of the Inflationary Process 77 6. 3. Some Economic and Economic-Policy Implications of the Dynamic Analysis 82 7. CONCLUDING REMARKS 89 LIST OF SYMBOLS 91 APPENDIX I. Estimation Results, Tables 1-14 92 APPENDIX II. Diagrams of Estimates, Transformed Excess Demand Model I 102 APPENDIX III. Operational Counterparts of the Variables Used in the Empirical Analysis, Statistical Sources and Numerical Data 109 III. A. Operational Counterparts of the Variables Used in the Empirical Analysis and Statistical Sources 110 III. B. Numerical Data 113 APPENDIX IV. Correlation Matrix of Variables in Transformed Excess Demand And Capacity Models 116 REFERENCES 117
  • Paunio, J.J. (1964)
    Bank of Finland. Series D 3
    Is a strong labour organisation able to achieve a general rise in workers' wages, and in what way does such an increase affect prices and employment?The problem though old, is still unsolved.When put in this way the question is so general in nature that no unambiguous answer can be expected.The analysis, which will be entirely theoretical, will be carried out with the aid of a comparatively simple model, in which the assumptions are practically the same as those found in the traditional theory. The model is static and the analysis therefore comparative static.
  • Newby, Elisa; Railavo, Jukka; Ripatti, Antti (2011)
    Bank of Finland bulletin. Economic outlook 3
    The purpose of economic forecasts is to support economic agents decision-making by providing a coherent picture of the present state of the economy and the outlook for the future. Since 2004, a key tool for preparing the Bank of Finland s forecast has been the Aino model.1 It is employed as a tool for integrating forecast information. The new version of the Aino model was introduced in the preparation of the March 2010 forecast. This article describes the features of the model and its use in the preparation of forecasts.
  • Öberg, Svante (2000)
    Bank of Finland. Bulletin 74 ; 2
  • Halko, Marja-Liisa (2003)
    Suomen Pankin keskustelualoitteita; Bank of Finland. Discussion papers 24/2003
    In this paper we study the implications of the unemployment insurance (UI) financing system on wage levels and employment when labour markets are unionised and the revenues of the firms are stochastic.We use the basic monopoly union approach of wage and employment determination and assume that unemployment benefits are financed by employees UI contributions to the union s UI fund and by the government s tax revenue.The main focus of this paper is on the effects of UI buffer funding on employment fluctuations.We show that, compared with the pay-as-you-go financing system, buffer funding stabilises the economy by decreasing employment fluctuations where wages are flexible.If wages are rigid, buffer funding stabilises net wage variations, but has hardly any effect on employment fluctuations. Key words: unemployment insurance, unions, stabilisation, buffer funding JEL classification numbers: E61, J51, J65
  • Bailliu, Jeannine; Han, Xinfen; Kruger, Mark; Liu, Yu-Hsien; Thanabalasingam, Sri (2018)
    BOFIT Discussion Papers 9/2018
    Published in International Journal of Forecasting, 35, 3, 2019, 1118-1130
    The official Chinese labour market indicators have been seen as problematic, given their small cyclical movement and their only-partial capture of the labour force. In our paper, we build a monthly Chinese labour market conditions index (LMCI) using text analytics applied to mainland Chinese-language newspapers over the period from 2003 to 2017. We use a supervised machine learning approach by training a support vector machine classification model. The information content and the forecast ability of our LMCI are tested against official labour market activity measures in wage and credit growth estimations. Surprisingly, one of our findings is that the much-maligned official labour market indicators do contain information. However, their information content is not robust and, in many cases, our LMCI can provide forecasts that are significantly superior. Moreover, regional disaggregation of the LMCI illustrates that labour conditions in the export-oriented coastal region are sensitive to export growth, while those in inland regions are not. This suggests that text analytics can, indeed, be used to extract useful labour market information from Chinese newspaper articles.
  • Koskela, Erkki; Stenbacka, Rune (2000)
    Suomen Pankin keskustelualoitteita 16/2000
    We offer a unified framework to analyze the determination of employment, employee effort, wages, profit sharing and capital structure when firms face stochastic revenue shocks.We apply a generalized Nash bargaining solution, which extends the wage bargaining literature by incorporating efficiency wage considerations, profit sharing and capital structure.The profit sharing instrument is demonstrated to have positive effort-augmenting and wage-moderating effects, which exactly offset the negative dilution effect in equilibrium.Leverage is shown to reduce employment and to have a strategic commitment value as a wage-moderating mechanism for firms facing unions in bilateral wage negotiations.Finally, some implications for equilibrium unemployment are discussed.Key words: wage bargaining, profit sharing, capital structure, employment
  • Kilponen, Juha (1999)
    Suomen Pankin keskustelualoitteita 9/1999
    This paper studies the relationship between central bank independence, wage bargaining structure and macroeconomic performance in OECD countries.A cross-sectional time-series (TSCS) model for inflation, nominal wage growth and unemployment for the period 1973-1996 is estimated using different and updated measures of central bank independence.The importance of the price stability objective in the central bank statute is used as a proxy for the degree of conservativeness of the central bank.A recently published data set on wage bargaining structure is used, and a distinction is made between coordination of wage bargaining and formal centralization.A new measure of union power is constructed, which combines formal centralization and union density.The implications of the large differences that can be seen between coverage and unionization rates in some countries are briefly discussed.Two important results emerge.First, the central bank's political independence and personnel independence contribute most importantly to a successful inflation policy.Second, a high level of coordination contributes to moderate inflation rates and unemployment, while union monopoly power tends to increase inflation.
  • (2001)
    Bank of Finland. Bulletin 75 ; 1
  • Nieminen, Mika; Heimonen, Kari; Tohmo, Timo (2017)
    BOFIT Discussion Papers 20/2017
    Published in Open Economies Review, 30, 2, 2019, 319–341
    This study provides novel evidence on the impact of labor market institutions on current account dynamics. Our results suggest that a high degree of coordination of wage bargaining has a positive effect on the current account balance over the long run. This result is not driven entirely by wage moderation induced by centralized wage setting, however. A high degree of coordination of wage bargaining is associated with a slower current account adjustment toward its long-run equilibrium. This result seems theoretically plausible; the aggregate shocks in the exporting sector are largely driven by idiosyncratic shocks and the presence of idiosyncratic shocks increases the importance of labor market flexibility. This analysis of the impact of labor market institutions on current account balances complements the existing empirical current account literature focused on macroeconomic and financial measures.
  • Ripatti, Antti; Vilmunen, Jouko (2001)
    Suomen Pankin keskustelualoitteita; Bank of Finland. Discussion papers 10/2001
    The study demonstrates that the decline in the labour share in Finland can not be explained by the Cobb-Douglas production function.Instead, we propose an approach based on the constant-elasticity-of-substitution (CES) production function with labour- and capital-augmenting technical progress.The model is augmented by imperfect competition in the output market.According to the empirical results based on estimation of the first-order-conditions, the technical elasticity of substitution is significantly less than unity (0.6) and hence the Cobb-Douglas production function is rejected.The growth rate of the estimated labour-augmenting technical progress has decreased in recent years, which is not consistent with the 'new-economy' hypothesis. Capital-augmenting technical trend has exploded during the same period, which provides a possible explanation for the rapid growth of the Solow residual.The main contributing factor behind the declining labour share is, however, the increasing mark-up. Keywords: production function, elasticity of technical substitution, input-augmenting technical progress, new economy
  • Oomes, Nienke; Kalcheva, Katerina (2007)
    BOFIT Discussion Papers 7/2007
    In this paper, we assess whether recent economic developments in Russia are symptomatic of Dutch Disease.We first provide a brief review of the literature on Dutch Disease and the natural resource curse.We then discuss the symptoms of Dutch Disease, which include (1) real exchange rate appreciation; (2) slower manufacturing growth; (3) faster service sector growth; and (4) higher overall wages.We test these predictions for Russia while carefully controlling for other factors that could have led to similar symptoms.We conclude that, while Russia has all of the symptoms, the diagnosis of Dutch Disease remains to be confirmed. JEL Classification Numbers: F30, P28, Q30 Key words: Dutch disease, real exchange rate, resource curse, Russia, oil, transition
  • Juvonen, Petteri; Obstbaum, Meri; Vanhala, Juuso (2019)
    Bank of Finland. Bulletin 3/2019
    Wage-setting is a key macroeconomic mechanism for employment and economic growth, and in a member state of a monetary union, its importance is even greater. Wages largely determine how the economy responds to shocks, as individual members of a monetary union do not have the possibility of resolving the situation via the exchange rate or by adjusting the nominal interest rate. Prices and wages also determine the real exchange rate of countries in a monetary union and thus play a key role in the development of competitiveness.
  • Haque, Qazi; Groshenny, Nicolas; Weder, Mark (2019)
    Bank of Finland Research Discussion Papers 20/2019
    The paper re-examines whether the Federal Reserve’s monetary policy was a source of instability during the Great Inflation by estimating a sticky-price model with positive trend inflation, commodity price shocks and sluggish real wages. Our estimation provides empirical evidence for substantial wage-rigidity and finds that the Federal Reserve responded aggressively to inflation but negligibly to the output gap. In the presence of non-trivial real imperfections and well-identified commodity price-shocks, U.S. data prefers a determinate version of the New Keynesian model: monetary policy-induced indeterminacy and sunspots were not causes of macroeconomic instability during the pre-Volcker era.
  • Rantala, Anssi (2001)
    Suomen Pankin keskustelualoitteita 7/2001
    Bank of Finland Discussion Papers 7/2001 Anssi Rantala Does monetary union reduce employment? We use a two-country monetary model with unionized labor markets and open-economy spillovers to study the macroeconomic consequences of the formation of a monetary union.It is shown that the monetary regime affects the trade-off between real consumer wages and employment faced by the unions.Consequently, the equilibrium employment is endogenous and depends on the monetary regime.In particular, a switch from a floating exchange rate regime to a monetary union improves employment, provided that the degree of central bank conservatism is sufficiently high, whereas with low degrees of conservatism employment falls.Inflation is higher in a monetary union with all finite degrees of central bank conservatism.In addition, we consider an asymmetric fixed exchange rate regime as an alternative starting position for a monetary union.All results are derived assuming that labor unions are only interested in employment and real wages (not directly inflation) and that all structural parameters of the model remain unchanged when a monetary union is established. Keywords: monetary union, employment, labor unions, open-economy spillovers, central bank conservatism
  • Égert, Balázs; Leonard, Carol S. (2007)
    BOFIT Discussion Papers 9/2007
    Published in Open Economies Review, Volume 19, Issue 2, April 2008, Pages 147-165
    In this paper we explore the evidence that would establish that Dutch disease is at work in, or poses a threat to, the Kazakh economy.Assessing the mechanism by which fluctuations in the price of oil can damage non-oil manufacturing-and thus long-term growth prospects in an economy that relies heavily on oil production-we find that non-oil manufacturing has so far been spared the perverse effects of oil price increases from 1996 to 2005.The real exchange rate in the open sector has appreciated over the last couple of years, largely due to the appreciation of the nominal exchange rate.We analyze to what extent this appreciation is linked to movements in oil prices and oil revenues.Econometric evidence from the monetary model of the exchange rate and a variety of real exchange rate models show that the rise in the price of oil and in oil revenues might be linked to an appreciation of the U.S. dollar exchange rate of the oil and non-oil sectors.But appreciation is mainly limited to the real effective exchange rate for oil sector and is statistically insignificant for non-oil manufacturing.Key words: price level, inflation, Balassa-Samuelson, tradables, house prices, regulated prices, Europe, transition JEL codes: E43, E50, E52, C22, G21, O52