Is there a NAIRU for the Netherlands?
AbstractThe Non-Accelerating Inflation Rate of Unemployment (NAIRU) is an appealing theoretical concept with strong macroeconomic policy implications. In practice, NAIRU's can be computed from estimated wage and price equations running in growth rates or in levels. In this paper we specify and estimate wage and price equations that enable NAIRU computation using quarterly data for the Netherlands over the period 1978 up to and including 1993. Our results are disappointing: the elementary requirements of economic plausibility and statistical significance prohibit NAIRU computation for the Netherlands. The specification of the estimated equations, i.e. in growth rates or in levels, does not matter in this respect.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Centre for Economic Research, University of Groningen and University of Twente in its series Working Papers with number 28.
Date of creation: May 1996
Date of revision:
unemployment; NAIRU; Phillips curve; wage level equation;
Find related papers by JEL classification:
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fase, M. M. G. & Kramer, P. & Boeschoten, W. C., 1992. "MORKMON II : The Nederlandsche Bank's quarterly model of the Netherlands economy," Economic Modelling, Elsevier, vol. 9(2), pages 146-204, April.
- den Butter, F. A. G. & van de Wijngaert, R. F., 1992. "Wage inflation and labour conflicts in the Netherlands : An empirical investigation using the co-integration approach," European Journal of Political Economy, Elsevier, vol. 8(4), pages 527-541, December.
- Joyce, Michael & Wren-Lewis, Simon, 1991. "The Role of the Real Exchange Rate and Capacity Utilisation in Convergence to the Nairu," Economic Journal, Royal Economic Society, vol. 101(406), pages 497-507, May.
- Setterfield, M.A. & Gordon, D.V. & Osberg, L., 1990.
"Searching For A Will O'The Wisp: An Empirical Study Of The Nairu In Canada,"
Department of Economics at Dalhousie University working papers archive
90-04, Dalhousie, Department of Economics.
- Setterfield, M. A. & Gordon, D. V. & Osberg, L., 1992. "Searching for a will o' the wisp : An empirical study of the NAIRU in Canada," European Economic Review, Elsevier, vol. 36(1), pages 119-136, January.
- Graafland, J.J., 1991. "From Phillips curve to wage curve," MPRA Paper 21077, University Library of Munich, Germany.
- Engle, Robert F & Granger, Clive W J, 1987. "Co-integration and Error Correction: Representation, Estimation, and Testing," Econometrica, Econometric Society, vol. 55(2), pages 251-76, March.
- Wallis, Kenneth F, 1993.
"On Macroeconomic Policy and Macroeconometric Models,"
The Economic Record,
The Economic Society of Australia, vol. 69(205), pages 113-30, June.
- Wallis, K.F., 1992. "On Macroeconomic Policy and Macroeconometric Models," CEPR Discussion Papers 264, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- Knoester, Anthonie & van der Windt, Nico, 1987. "Real Wages and Taxation in Ten OECD Countries," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 49(1), pages 151-69, February.
- Dolado, Juan J & Jenkinson, Tim & Sosvilla-Rivero, Simon, 1990. " Cointegration and Unit Roots," Journal of Economic Surveys, Wiley Blackwell, vol. 4(3), pages 249-73.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005.
"Unemployment: Macroeconomic Performance and the Labour Market,"
Oxford University Press, number 9780199279173.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 1991. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780198284345.
- Turner, David S, 1991. "The Determinants of the Nairu Response in Simulations on the Treasury Model," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 53(3), pages 225-42, August.
- Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
- repec:ner:carlos:info:hdl:10016/3321 is not listed on IDEAS
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel).
If references are entirely missing, you can add them using this form.