Markup calculation

The markup calculation is part of the modified Phillips curve model .

This can be the link between wages , prices of products and the unemployment rate simulated in one country and represent simplified. Various approaches use this model, including the acceleration hypothesis .

The following applies:

• ${\displaystyle w_{t}-w_{t-1}=hy_{t}+c(p_{t-1}-p_{t-2}),\quad h>0,\;0<c<1}$

It is the wage growth rate (= ), the natural unemployment rate , the actual unemployment , a positive factor, c is a positive constant between 0 and 1 and the expected rate of inflation , in each case for the period ${\displaystyle w_{t}}$ ${\displaystyle w_{t}-w_{t-1}}$ ${\displaystyle p_{t-1}}$ ${\displaystyle p_{t-2}}$ ${\displaystyle h}$ ${\displaystyle y_{t}}$ ${\displaystyle t}$