Can productivity growth explain the NAIRU? Long-run evidence from Britain, 1871-1999
This paper investigates the effect of productivity growth on the non-accelerating inflation rate of unemployment (NAIRU) over the long run, using historically consistent time series for the UK from 1871 to 1999. A two-equation model of unemployment and wage-setting that incorporates productivity effects is estimated over the whole period, allowing for shifts associated with changes in labour market institutions. The results indicate that faster productivity growth reduces the NAIRU, but that...[Show more]
|Collections||ANU Research Publications|
|01_Hatton_Can_productivity_growth_2007.pdf||176.45 kB||Adobe PDF||Request a copy|
Items in Open Research are protected by copyright, with all rights reserved, unless otherwise indicated.