This paper investigates the aggregate and sectoral public-private remuneration pattern in South Africa from 2001:q1 to 2017:q1. Co-integration analysis confirm a stable, long-run relationship. The adjustment to the deviations from this long-run relationship is strong and significant for public-sector remuneration, while private-sector earnings neither respond to the deviations from the long-run relationship nor lagged changes of public sector remuneration. No individual public-sector remuneration is found to Granger-cause an individual private-sector remuneration.
Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data)
This paper documents the price setting behaviour, and the change in this behaviour, amongst retail firms after the introduction of the new currency system in Zimbabwe. We use sample data which covers 291 products to investigate whether prices became more flexible (rigid) and to track the adjustment process as Zimbabwe moved further away from the date the new currency system was introduced. We find evidence that prices became more flexible with time although this change is relatively small compared to the variation in the frequency of price changes between months.
We study the relationship between price-setting behavior and the degree of competition in a setting where markets and information flows are relatively imperfect. Using a unique dataset that combines survey data on retail outlets in Lesotho, and detailed historical information on their product prices, we find a non-monotonic relationship between the frequency of price changes and perceived competition, measured by the number of reported competitors.