Are Real Wages and Unemployment Related
Bibliographic Data
| ID | 9721822 |
|---|---|
| Authors | Tor Jacobson (Swedish National Bank), Anders Vredin (Swedish National Bank), Anders Warne (Stockholm University) |
| Year | 1998 |
| Volume | 65 |
| Issue | 257 |
| Pages | 69-96 |
| Publication date | 1998-02-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/1468-0335.00114 |
| OpenAlex | W2120472049 |
| Language | EN |
| Citations received | 3 |
| References cited | 3 |
In this paper we propose an alternative method for investigating the sources behind the behaviour of real wages and unemployment. The model we study is a certain cointegrated VAR, a so‐called common trends model, which has become increasingly popular in the empirical growth/business cycle literature. This model leads us to emphasize the distinction between long‐run and short‐run relations. Using quarterly Swedish data (1965–90), we find only weak evidence of a short‐run relation between real wages and unemployment as reported in traditional single‐equation error correction models. There is even less evidence of a long‐run relation
Business cycle · Cointegration · Econometrics · Economics · Empirical evidence · Error correction model · Macroeconomics · Real wages · Relation (database) · Short run · Unemployment · Computer Science · Economic theories and models · Economic Theory and Policy · Monetary Policy and Economic Impact
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| Citations per year | 0.1 |
|---|---|
| Citation span | 1996 - 2024 (29) |
| Highly cited | No |