The US Wage Phillips Curve Across Frequencies and Over Time

20 Pages Posted: 22 Jun 2011

See all articles by Marco Gallegati

Marco Gallegati

Università Politecnica delle Marche - Faculty of Economics

Mauro Gallegati

Università Politecnica delle Marche - Faculty of Economics

James Bernard Ramsey

affiliation not provided to SSRN

Willi Semmler

The New School - Department of Economics; Universitaet Bielefeld; IIASA

Date Written: August 2011

Abstract

Although widely used in many areas of applied sciences, wavelet analysis has not fully entered the economic discipline yet. In this article we apply wavelet analysis to one of the most investigated relationships is in empirical macroeconomics: the relationship between wage inflation and unemployment. Using US postwar data we find a frequency‐dependent relationship of a sort that is consistent with Phillips’ original insights. It also turns out that this relationship is remarkably stable over the 1948-93 period, but not in the aftermath, as a consequence of a process of adaption of the wage formation process to a low inflation environment.

Keywords: C63, E24, E31

Suggested Citation

Gallegati, Marco and Gallegati, Mauro and Ramsey, James Bernard and Semmler, Willi, The US Wage Phillips Curve Across Frequencies and Over Time (August 2011). Oxford Bulletin of Economics and Statistics, Vol. 73, Issue 4, pp. 489-508, 2011. Available at SSRN: https://ssrn.com/abstract=1869544 or http://dx.doi.org/10.1111/j.1468-0084.2010.00624.x

Marco Gallegati (Contact Author)

Università Politecnica delle Marche - Faculty of Economics ( email )

Piazzale Martelli, 8
60121 Ancona
Italy

Mauro Gallegati

Università Politecnica delle Marche - Faculty of Economics ( email )

Piazzale Martelli, 8
60121 Ancona
Italy
++390712207188 (Phone)
++390712207102 (Fax)

James Bernard Ramsey

affiliation not provided to SSRN

No Address Available

Willi Semmler

The New School - Department of Economics ( email )

65 Fifth Avenue
New York, NY 10003
United States

HOME PAGE: http://www.newschool.edu/nssr/faculty/?id=4e54-6b79-4e41-3d3d

Universitaet Bielefeld ( email )

Universitätsstraße 25
Bielefeld, NRW
Germany

IIASA ( email )

Schlossplatz 1
Laxenburg/Austria, A-2361
Austria

Register to save articles to
your library

Register

Paper statistics

Downloads
2
Abstract Views
385
PlumX Metrics