IDEAS home Printed from https://ideas.repec.org/a/taf/irapec/v12y1998i2p165-185.html
   My bibliography  Save this article

The NAIRU and Classical Unemployment in the OECD Countries

Author

Listed:
  • Jakob Madsen

Abstract

Using panel data for the OECD countries over the period 1960-93 this paper estimates the NAIRU, tests the restrictions implied by the NAIRU and estimates the extent to which the NAIRU is able to explain the low frequency movements in unemployment. The results indicate that the long-run restrictions imposed on the NAIRU are not satisfied for many countries and that the NAIRU is unable to account for the low frequency movements in unemployment.

Suggested Citation

  • Jakob Madsen, 1998. "The NAIRU and Classical Unemployment in the OECD Countries," International Review of Applied Economics, Taylor & Francis Journals, vol. 12(2), pages 165-185.
    • Handle: RePEc:taf:irapec:v:12:y:1998:i:2:p:165-185
    DOI: 10.1080/02692179800000001
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/02692179800000001
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/02692179800000001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Malcolm C. Sawyer, 1983. "Business Pricing and Inflation," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-03166-5, December.
    2. Jeffrey Sachs, 1986. "High Unemployment in Europe: Diagnosis and Policy Implications," NBER Working Papers 1830, National Bureau of Economic Research, Inc.
    3. Madsen, J.B., 1996. "The constant term fallacy in estimates of the NAIRU," Discussion Paper Series In Economics And Econometrics 9649, Economics Division, School of Social Sciences, University of Southampton.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Groth, Christian & Madsen, Jakob B., 2016. "Medium-term fluctuations and the “Great Ratios” of economic growth," Journal of Macroeconomics, Elsevier, vol. 49(C), pages 149-176.
    2. T. D. Stanley, 2005. "Beyond Publication Bias," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 309-345, July.
    3. PLASMANS, Joseph & MEERSMAN, Hilde & VAN POECK, André & MERLEVEDE, Bruno, 1999. "Generosity of the unemployment benefit systern and wage flexibility in EMU: Time- varying evidence in five countries," Working Papers 1999043, University of Antwerp, Faculty of Business and Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ansgar Belke & Matthias Göcke & Laura Werner, 2014. "Hysteresis Effects in Economics – Different Methods for Describing Economic Path-dependence," Ruhr Economic Papers 0468, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    2. Jean-Paul Fitoussi & Edmund S. Phelps, 1987. "Politique économique aux Etats-Unis et croissance du chômage en Europe," Revue de l'OFCE, Programme National Persée, vol. 18(1), pages 123-147.
    3. Anna M. Carabelli & Mario A. Cedrini, 2010. "Global imbalances, monetary disorder, and shrinking policy space: Keynes's legacy for our troubled world," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 7(2), pages 303-323.
    4. Harry Bloch & David Sapsford, 1996. "Trend in the international terms of trade between primary producers and manufacturers," Journal of International Development, John Wiley & Sons, Ltd., vol. 8(1), pages 53-67.
    5. Michael C. Burda & Jeffrey D. Sachs, 1987. "Institutional Aspects of High Unemployment in the Federal Republic of Germany," NBER Working Papers 2241, National Bureau of Economic Research, Inc.
    6. Patrick Artus & Sani Avouyi-Dovi, 1990. "Inflation anticipée, politique monétaire et taux d'intérêt aux Etats-Unis," Revue Économique, Programme National Persée, vol. 41(3), pages 581-598.
    7. Belke, Ansgar & Göcke, Matthias & Werner, Laura, 2014. "Hysteresis Effects in Economics – Different Methods for Describing Economic Path-dependence," Ruhr Economic Papers 468, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    8. Michael Burda, 1988. "Is there a capital shortage in Europe?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 124(1), pages 38-57, March.
    9. Lucrezia Reichlin, 1989. "Fluctuations et croissance en Europe : une analyse empirique," Revue de l'OFCE, Programme National Persée, vol. 26(1), pages 71-93.
    10. repec:zbw:rwirep:0468 is not listed on IDEAS
    11. Rachel McCulloch, 1988. "Macroeconomic Policy and Trade Performance: International Implications and U.S. Budget Deficits," NBER Chapters, in: Issues in US-EC Trade Relations, pages 349-370, National Bureau of Economic Research, Inc.
    12. repec:hal:spmain:info:hdl:2441/5951 is not listed on IDEAS
    13. Franz, Wolfgang, 1990. "Hysteresis in Economic Relationships: An Overview," Empirical Economics, Springer, vol. 15(2), pages 109-125.
    14. Paqué, Karl-Heinz, 1989. "Wage gaps, hysteresis and structural unemployment: The West German labour market in the seventies and eighties," Kiel Working Papers 358, Kiel Institute for the World Economy (IfW Kiel).
    15. Malcolm Sawyer, 1997. "The NAIRU: A Critical Appraisal," Macroeconomics 9712013, University Library of Munich, Germany.
    16. Paul Downward & Frederick Lee, "undated". "Post Keynesian Pricing Theory `Reconfirmed'(?) A Critical Review of `Asking About Prices'," Working Papers 98-13, Staffordshire University, Business School.
    17. Matthias Goecke, 2019. "Economic Hysteresis with Multiple Inputs - A Simplified Treatment," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 17(1-B), pages 98-113.
    18. Belke Ansgar, 2018. "Secular Stagnation, Unemployment Hysteresis and Monetary Policy in EMU: Scratches but Not Scars?," The Economists' Voice, De Gruyter, vol. 15(1), pages 1-14, December.
    19. Geoffrey M. B. Tootell, 1998. "Globalization and U.S. inflation," New England Economic Review, Federal Reserve Bank of Boston, issue Jul, pages 21-33.
    20. repec:spo:wpmain:info:hdl:2441/5951 is not listed on IDEAS
    21. Gangopadhyay, Partha & Gangopadhyay, Renu, 2008. "Flexible reservation prices and price inflexibility," Economic Modelling, Elsevier, vol. 25(3), pages 499-511, May.
    22. Franz, Wolfgang & Hofmann, Thomas, 1989. "Unemployment and stability of inflation: The concept of the NAIRU in an international perspective and an estimation for Germany using business survey data," Discussion Papers, Series II 87, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    23. Gottschalk, Jan, 2002. "Keynesian and monetarist views on the German unemployment problem: theory and evidence," Kiel Working Papers 1096, Kiel Institute for the World Economy (IfW Kiel).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:irapec:v:12:y:1998:i:2:p:165-185. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CIRA20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.