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NAIRU estimates for Croatia

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  • Valerija Botric

    (The Institute of Economics Zagreb, Zagreb, Croatia)

Abstract

The main goal of the paper is to estimate the NAIRU for Croatian economy and to discuss the implications of this indicator. The paper provides time-varying estimates of the NAIRU for 2000q1-2011q1 period, which were obtained by applying the Kalman filter method. The results reveal that the average estimated value was 12.6 percent, which on average is below the average registered unemployment rate. The dynamics of the estimated NAIRU points to the ability of the NAIRU to reveal underlying structural misbalances in a national economy. Specifically, the approaching crises effect has been detected, as well as previously documented inflationary pressures, thereby confirming the potential usefulness of the NAIRU estimation for economic policy decision making process in Croatia.

Suggested Citation

  • Valerija Botric, 2012. "NAIRU estimates for Croatia," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 30(1), pages 163-180.
    • Handle: RePEc:rfe:zbefri:v:30:y:2012:i:1:p:163-180
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    References listed on IDEAS

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    More about this item

    Keywords

    NAIRU; Kalman filter; Croatia;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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