An Updated Assessment of the Lucas Supply Curve

Previous empirical work that assessed the theoretical results of Lucas (1972) is updated by incorporating recent data, utilizing advancements in time series methods and bootstrapping results. Specifically, the two-stage method of Ball et al. (1988) and others is used, but the functional form used in the first stage is such that the data are stationary. In comparison to using the traditional first stage functional form, coefficient estimates are smaller in absolute value, but still significant.