Abstract

http://ssrn.com/abstract=1883390
 


 



Employment Growth, Inflation and Output Growth: Was Phillips Right? Evidence from a Dynamic Panel


Guglielmo Maria Caporale


Brunel University - Centre for Empirical Finance

Marinko Skare


Juraj Dobrila University of Pula

June 30, 2011

CESifo Working Paper Series No. 3502

Abstract:     
In this paper we analyse the short- and long-run relationship between employment growth, inflation and output growth in Phillips’ tradition. For this purpose we apply FMOLS, DOLS, PMGE, MGE, DFE, and VECM methods to a nonstationary heterogeneous dynamic panel including annual data for 119 countries over the period 1970-2010, and also carry out multivariate Granger causality tests. The empirical results strongly support the existence of a single cointegrating relationship between employment growth, inflation and output growth with bidirectional causality between employment growth and inflation as well as output growth, giving support to Phillips’ Golden Triangle theory.

Number of Pages in PDF File: 27

Keywords: employment growth, inflation, output growth, Golden Triangle theory

JEL Classification: C230, E240, E310, E600

working papers series


Download This Paper

Date posted: July 11, 2011  

Suggested Citation

Caporale, Guglielmo Maria and Skare, Marinko, Employment Growth, Inflation and Output Growth: Was Phillips Right? Evidence from a Dynamic Panel (June 30, 2011). CESifo Working Paper Series No. 3502. Available at SSRN: http://ssrn.com/abstract=1883390

Contact Information

Guglielmo Maria Caporale (Contact Author)
Brunel University - Centre for Empirical Finance ( email )
Uxbridge UB8 3PH
United Kingdom
Marinko Skare
Juraj Dobrila University of Pula ( email )
Preradoviceva 1/1
Pula, Istarska Zupanija 52100
Croatia
385 52 377000 (Phone)
385 52 216 416 (Fax)
HOME PAGE: http://www.efpu.hr
Feedback to SSRN


Paper statistics
Abstract Views: 365
Downloads: 80
Download Rank: 181,221

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 0.203 seconds