Testing Steady-State Implications for the Nairu

Bibliographic Data

ID19313282
AuthorsGunnar Bårdsen (0000-0002-0834-7872, Norwegian University of Science and Technology), Ragnar Nymoen (0000-0003-3974-9919, University of Oslo)
Year2003
Volume85
Issue4
Pages1070-1075
Publication date2003-11-01
Open AccessNo
TypeARTICLE
VenueThe Review of Economics and Statistics (JOURNAL)
Journal identifiersISSN: 0034-6535 • E-ISSN: 1530-9142
PublisherMIT Press - Journals (PUBLISHER)
DOI10.1162/003465303772815943
OpenAlexW2260260585
LanguageEN
Citations received2
References cited20

Estimates of the NAIRU are usually derived either from a Phillips curve or from a wage curve. This paper investigates the correspondence between the operational NAIRU concepts and the steady state of a dynamic wage-price model. We derive the parameter restrictions that secure that correspondence. The full set of restrictions can be tested by econometric analysis of the wage-price system, and this method is demonstrated for Norwegian data. A set of necessary conditions can be tested from estimated wage curves alone. Existing international evidence from empirical wage equations are reinterpreted in light of these conditions

Econometric model · Econometrics · Economics · Labour economics · Macroeconomics · NAIRU · Norwegian · Phillips curve · Set (abstract data type) · Steady state (chemistry) · Unemployment · Wage · Computer Science · Economic theories and models · Economic Theory and Policy · Monetary Policy and Economic Impact

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