Testing Steady-State Implications for the NAIRU

Gunnar Bårdsen; Ragnar Nymoen

doi:10.1162/003465303772815943

← Search

Testing Steady-State Implications for the NAIRU

Gunnar Bårdsen¹; Ragnar Nymoen²

¹ Norwegian University of Science and Technology · ² University of Oslo

The Review of Economics and Statistics 2003 open access

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 reinterpreted in light of these conditions.

DOI: 10.1162/003465303772815943
Volume: 85 (4)
Pages: 1070-1075
Language: en
Export: BibTeX
Sources: openalex crossref