Employment growth, inflation and output growth : was Phillips right? ; evidence from a dynamic panel

Guglielmo Maria Caporale ; Marinko Škare

In this paper we analyse the short- and long-run relationship between employment growth, inflation and output growth in Phillips' tradition. For this purpose we apply FMOLS, DOLS, PMGE, MGE, DFE, and VECM methods to a nonstationary heterogeneous dynamic panel including annual data for 119 countries over the period 1970-2010, and also carry out multivariate Granger causality tests. The empirical results strongly support the existence of a single cointegrating relationship between employment growth, inflation and output growth with bidirectional causality between employment growth and inflation as well as output growth, giving support to Phillips' Golden Triangle theory.

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Year of publication:	2011
Authors:	Caporale, Guglielmo Maria ; Škare, Marinko
Publisher:	München : CESifo
Subject:	Phillips-Kurve \| Phillips curve \| Erwerbstätigkeit \| Employment \| Inflation \| Wirtschaftswachstum \| Economic growth \| Panel \| Panel study \| Schätzung \| Estimation \| Welt \| World \| 1970-2010

Extent:	Online-Ressource (PDF-Datei: 43 S., 271 KB) graph. Darst.
Series:	CESifo working papers. - München : [Verlag nicht ermittelbar], ISSN 2364-1428, ZDB-ID 2065232-X. - Vol. 3502
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Notes:	Systemvoraussetzungen: Acrobat Reader
Other identifiers:	hdl:10419/49489 [Handle]
Classification:	C23 - Models with Panel Data ; E24 - Employment; Unemployment; Wages ; E31 - Price Level; Inflation; Deflation ; E60 - Macroeconomic Policy Formation, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook. General
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10009162091