Impact of wage rigidity on sovereign credit rating

被引：3
|
作者：
Yang, Daecheon [1 ]
Song, Jeongseok [2 ]
机构：
[1] Chung Ang Univ, Sch Business Adm, Seoul 06974, South Korea
[2] Chung Ang Univ, Sch Econ, Seoul 06974, South Korea
来源：
EMERGING MARKETS REVIEW | 2018年 / 34卷
关键词：
Wage rigidity; Sovereign credit rating; Regime switching; Cash flow volatility; COST STICKINESS; TIME-SERIES; RISK; UNEMPLOYMENT; COUNTRIES; POLICIES; REAL; OECD;
D O I：
10.1016/j.ememar.2017.10.002
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
Sovereign credit rating is a condensed assessment of a country's ability to repay its public debt in a timely fashion. Downward wage rigidity has been considered as a critical determinant of various macroeconomic and financial phenomena. This study examines the effect of a country's wage rigidity on its sovereign credit rating after measuring downward wage rigidities based on a regime-switching model. The results indicate that greater wage rigidity induces lower sovereign credit rating. We find that wage rigidity amplifies cash flow fluctuations and magnified cash flow volatility negatively affects sovereign credit rating. (C) 2017 Elsevier B.V. All rights reserved.
引用
收藏
页码：25 / 41
页数：17
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