Testing Steady-State Implications for the NAIRU

Arbeitspapier

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 re-interpreted in light of these conditions.

Object Details

• ISBN: 82-7553-159-4
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Arbeidsnotat ; No. 2000/3

Classification and Topics

• Classification: Wirtschaft ; Model Construction and Estimation ; Model Evaluation, Validation, and Selection ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Price Level; Inflation; Deflation ; Wages, Compensation, and Labor Costs: General
• Subject: NAIRU ; Phillips curve ; wage curve ; steady state ; natural rate ; dynamic modelling

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bårdsen, Gunnar ; Nymoen, Ragnar
• Event: Veröffentlichung
• (who): Norges Bank
• (where): Oslo
• (when): 2000

Further information

• Handle: http://hdl.handle.net/10419/209777
• Last update: 10.03.2025, 11:42 AM CET