VAR and generalized impulse response analysis of manufacturing unit labor costs

Bradley T. Ewing, Mark Andrew Thompson

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

This paper examines the relationship among manufacturing unit labor costs in the United States, United Kingdom, and Canada. The analysis is conducted within the context of an economic system utilizing the recently developed method of generalized impulse response analysis to simulate the responses of the cost series to disturbances. The results indicate that, while unit labor costs do not share a common stochastic trend, there are significant responses in the unit labor costs of each country to shocks in the costs of other countries that are not captured by standard interpretation of the multiple-equation model results. The findings indicate the presence of significant linkages among unit labor costs in the countries studied. The results are consistent with the economic environment of manufacturing operations being characterized by a competitive, integrated marketplace.

Original languageEnglish (US)
Pages (from-to)2575-2583
Number of pages9
JournalPhysica A: Statistical Mechanics and its Applications
Volume387
Issue number11
DOIs
StatePublished - Apr 15 2008

Fingerprint

labor
Impulse Response
impulses
manufacturing
Manufacturing
costs
Unit
Costs
economics
Stochastic Trend
Economics
United Kingdom
Canada
linkages
Linkage
Shock
disturbances
Disturbance
shock
trends

Keywords

  • Impulse response
  • Systems
  • Time series
  • Unit labor costs
  • VAR

ASJC Scopus subject areas

  • Statistics and Probability
  • Condensed Matter Physics

Cite this

VAR and generalized impulse response analysis of manufacturing unit labor costs. / Ewing, Bradley T.; Thompson, Mark Andrew.

In: Physica A: Statistical Mechanics and its Applications, Vol. 387, No. 11, 15.04.2008, p. 2575-2583.

Research output: Contribution to journalArticle

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