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The Challenge of Application of Phillips Curve: The Case of Croatia

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Author Info
Ivo Druzic (Faculty of Economics and Business, Zagreb, Croatia)
Josip Tica (Faculty of Economics and Business, Zagreb, Croatia)
Ante Mamic (Business Innovation Centre of Croatia, Zagreb, Croatia)

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Abstract

In this paper hypothesis of relation between unemployment and the rate of change in prices is tested in Croatia with data spanning from 1962 to 2004. Empirical test is designed with a goal of testing the original Phillips curve developed by A. W. Phillips and adaptive expectation augmented Phillips curve designed by Edmund S. Phelps. Since both these versions of the relationship were designed for the US economy, authors suggest a new theory of accommodation through insolvency for the Croatian economy

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Publisher Info
Article provided by Faculty of Economics and Business, University of Zagreb in its journal Zagreb International Review of Economics and Business.

Volume (Year): 9 (2006)
Issue (Month): Special Conference Issue (December)
Pages: 45-60
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Handle: RePEc:zag:zirebs:v:9:y:2006:i:sci:p:45-60

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Postal: Zagreb International Review of Economics and Business, Faculty of Economics and Business, Trg J. F. Kennedy 6, 10000 Zagreb, Croatia.
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Related research
Keywords: the Phillips Curve; insolvency; transition; Croatia;

Find related papers by JEL classification:
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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This page was last updated on 2009-11-15.

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