Document Type : Research Paper

Authors

• Somayeh Khanjari ¹
• Masud Homayounifar ²

¹ M.S. in Agricultural Economy, University of Zabol

² Assistsnt Professor, Faculty of Economics, Ferdowsi University of Mashhad

Abstract

In this research ,the impacts of nominal shocks (money supply) on real wage in
the industrial sector of  Iran has been investigated for period 1981-2008. The model
that we have used in this study is Vector Autoregressive Model.According to the
results of Johansen test, a long run (cointegrated) relationship between variables in
the industrial sector of Iran is confirmed. After estimation of the model and
calculation of Impulse Response Function and analyzing dynamics in the model, we
will be able to evaluate the response of real wage of industrial sector and the GDP
to the shock of monetary policy variables. On the basis of the results,response of
real wages is negative and GDP is positive, real and the wages of industrial sector
are sticky.  

Keywords

• Real Wage
• VAR Model
• Nominal Shocks
• Sticky
• Johansen Cointegration Test