IDEAS home Printed from https://ideas.repec.org/a/fep/journl/v4y1991i2p154-162.html
   My bibliography  Save this article

A note on the joint movements of the Phillips and beveridge curves

Author

Listed:
  • Jaakko Pehkonen

    (University of Jyväskylä)

Abstract

In his recent study Blanchard (1989) investigates the nature and origin of persistent unemployment by a joint examination of the movements of the Phillips and Beveridge curves. According to Blanchard, the persistence of unemployment can be associated either with the reallocation or the bargaining factors, depending upon the degree of correlation between the shifts in the Phillips and Beveridge curves: If both curves shift simultaneously this provides support for the reallocation explanation of the rise in the non-accelerating rate of unemployment; if the shifts are not correlated, this implies that the bargaining factors explain the persistence of high unemployment. The aim of the present study is to investigate the usefulness of the testing methodology proposed and employed in Blanchard's study. This is done by examining the robustnesses of the results derived from such an analysis with respect to various specifications of the Phillips and Beveridge curves and different time periods. The analysis is carried out by using aggregate data on the Finnish economy from the period 1960-1987. The main result of the study is that no precise conclusions can be obtained by employing the proposed research strategy.

Suggested Citation

  • Jaakko Pehkonen, 1991. "A note on the joint movements of the Phillips and beveridge curves," Finnish Economic Papers, Finnish Economic Association, vol. 4(2), pages 154-162, Autumn.
    • Handle: RePEc:fep:journl:v:4:y:1991:i:2:p:154-162
    as

    Download full text from publisher

    File URL: http://taloustieteellinenyhdistys.fi/images/stories/fep/f1991_2f.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Olivier J. Blanchard & Lawrence H. Summers, 1986. "Hysteresis and the European Unemployment Problem," NBER Chapters, in: NBER Macroeconomics Annual 1986, Volume 1, pages 15-90, National Bureau of Economic Research, Inc.
    2. Layard, Richard & Bean, Charles, 1989. " Why Does Unemployment Persist?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 91(2), pages 371-396.
    3. Outi Aarnio, 1989. "On the effects of duration on Finnish unemployment," Finnish Economic Papers, Finnish Economic Association, vol. 2(1), pages 65-81, Spring.
    4. Blanchard, Olivier J. & Summers, Lawrence H., 1987. "Hysteresis in unemployment," European Economic Review, Elsevier, vol. 31(1-2), pages 288-295.
    5. Oliver Jean Blanchard & Peter Diamond, 1989. "The Beveridge Curve," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 20(1), pages 1-76.
    Full references (including those not matched with items on IDEAS)

    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. Mikael Carlsson & Stefan Eriksson & Nils Gottfries, 2006. "Testing Theories of Job Creation: Does Supply Create Its Own Demand?," CESifo Working Paper Series 1866, CESifo.
    2. S. Haincourt. & M. Mogliani., 2012. "Has the 2008-2009 recession increased the structural share of unemployment in the euro area?," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 25, pages 63-80, Spring.
    3. Laurence Ball & N. Gregory Mankiw, 2002. "The NAIRU in Theory and Practice," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 115-136, Fall.
    4. Cédric Tille, 1998. "Decomposition of the Unemployment Gap between Canada and the United States: Duration or Incidence?," Canadian Public Policy, University of Toronto Press, vol. 24(s1), pages 90-102, February.
    5. Richard K. Crump & Stefano Eusepi & Marc Giannoni & Aysegul Sahin, 2019. "A Unified Approach to Measuring u," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 50(1 (Spring), pages 143-238.
    6. Thomas, Carlos & Zanetti, Francesco, 2009. "Labor market reform and price stability: An application to the Euro Area," Journal of Monetary Economics, Elsevier, vol. 56(6), pages 885-899, September.
    7. Chang, Yongsung & Nam, Jaeryang & Rhee, Changyong, 2004. "Trends in unemployment rates in Korea: A search-matching model interpretation," Journal of the Japanese and International Economies, Elsevier, vol. 18(2), pages 241-263, June.
    8. Dosi, G. & Pereira, M.C. & Roventini, A. & Virgillito, M.E., 2017. "When more flexibility yields more fragility: The microfoundations of Keynesian aggregate unemployment," Journal of Economic Dynamics and Control, Elsevier, vol. 81(C), pages 162-186.
    9. Klinger, Sabine & Weber, Enzo, 2014. "Decomposing Beveridge curve dynamics by correlated unobserved components: The impact of labour market reforms in Germany," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100499, Verein für Socialpolitik / German Economic Association.
    10. Ortigueira, Salvador, 2001. "Unemployment Benefits and the Persistence of European Unemployment," Working Papers 01-16, Cornell University, Center for Analytic Economics.
    11. Franz, Wolfgang, 1993. "Unvollkommene Arbeitsmärkte in makroökonomischen Modellen: Eine Übersicht," Discussion Papers 1, University of Konstanz, Center for International Labor Economics (CILE).
    12. Marika Karanassou & Hector Sala & Dennis Snower, 2007. "The macroeconomics of the labor market: three fundamental views," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 6(3), pages 151-180, December.
    13. Daniel Kienzler & Kai D. Schmid, 2014. "Hysteresis in Potential Output and Monetary Policy," Scottish Journal of Political Economy, Scottish Economic Society, vol. 61(4), pages 371-396, September.
    14. Jeff Borland & Ian McDonald, 2000. "Labour Market Models of Unemployment in Australia," Melbourne Institute Working Paper Series wp2000n15, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    15. Sabine Klinger & Enzo Weber, 2016. "Decomposing Beveridge Curve Dynamics By Correlated Unobserved Components," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 78(6), pages 877-894, December.
    16. Peter A. Diamond & Ayşegül Şahin, 2016. "Disaggregating the Matching Function," NBER Working Papers 22965, National Bureau of Economic Research, Inc.
    17. Ortigueira, Salvador, 2006. "Skills, search and the persistence of high unemployment," Journal of Monetary Economics, Elsevier, vol. 53(8), pages 2165-2178, November.
    18. Gordon Wilkinson, 1997. "A Micro Approach to the Issue of Hysteresis in Unemployment: Evidence from the 1988­1990 Labour Market Activity Survey," Staff Working Papers 97-12, Bank of Canada.
    19. Feve, Patrick & Langot, Francois, 1996. "Unemployment and the business cycle in a small open economy: G.M.M. estimation and testing with French data," Journal of Economic Dynamics and Control, Elsevier, vol. 20(9-10), pages 1609-1639.
    20. Bianchi, Marco & Zoega, Gylfi, 1997. "Challenges facing natural rate theory," European Economic Review, Elsevier, vol. 41(3-5), pages 535-547, April.

    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:fep:journl:v:4:y:1991:i:2:p:154-162. 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: Editorial Secretary (email available below). General contact details of provider: https://edirc.repec.org/data/talouea.html .

    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.