IDEAS home Printed from
   My bibliography  Save this article

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


  • Jaakko Pehkonen

    (University of Jyväskylä)


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

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    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.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Access and download statistics


    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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Editorial Secretary). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.