Testing Steady-State Implications for the NAIRU

Bardsen, Gunnar; Nymoen, Ragnar

doi:10.2139/ssrn.223428

Abstract

Citations (4)

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Testing Steady-State Implications for the NAIRU

Gunnar Bardsen

Norwegian University of Science and Technology (NTNU) - Department of Economics

University of Oslo - Department of Economics

April 14, 2000

Abstract:
Estimates of the NAIRU are usually derived either from a Phillips-curve or from a real wage curve in an incomplete competition model. 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 secures such a 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.

Number of Pages in PDF File: 20

JEL Classification: C51, C52, E24, E31, J30

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Date posted: May 30, 2000

Suggested Citation

Bardsen, Gunnar and Nymoen, Ragnar, Testing Steady-State Implications for the NAIRU (April 14, 2000). Available at SSRN: http://ssrn.com/abstract=223428 or http://dx.doi.org/10.2139/ssrn.223428

Contact Information

Gunnar Bardsen Norwegian University of Science and Technology (NTNU) - Department of Economics ( email ) NTNU Dragvoll N-7491 Trondheim Norway HOME PAGE: http://www.svt.ntnu.no/iso/gunnar.bardsen
Ragnar Nymoen (Contact Author) University of Oslo - Department of Economics ( email ) P.O. Box 1095 Blindern N-0317 Oslo Norway

Abstract

Citations (4)

Testing Steady-State Implications for the NAIRU

Gunnar Bardsen

Ragnar Nymoen

Date posted: May 30, 2000

Suggested Citation

Contact Information

Gunnar Bardsen

Ragnar Nymoen (Contact Author)