Production Constraints and the Nairu

This paper argues that the production constraints in the basic NAIRU model should be distinguished by type: capital constraints and labour constraints. It notes the failure to incorporate this phenomenon in standard macro models. Using panel data for UK manufacturing over 80 quarters we show that capital constraints became relatively more important during the 1980s as industry failed to match the increase in labour flexibility with rising capital investment. --

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Year of publication:	2011
Authors:	Driver, Ciaran F.
Other Persons:	Hall, Stephen G. (contributor)
Publisher:	[2011]: [S.l.] : SSRN
Subject:	Natürliche Arbeitslosenquote \| Natural rate of unemployment \| Arbeitsproduktivität \| Labour productivity \| Großbritannien \| United Kingdom \| Kapitalproduktivität \| Capital productivity \| Industrie \| Manufacturing industries \| Theorie \| Theory \| Panel \| Panel study \| Strukturbruch \| Structural break

Extent:	1 Online-Ressource (17 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	In: Economics: The Open-Access, Open-Assessment E-Journal, Vol. 2, 2008-11 Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments 2008 erstellt
Classification:	C23 - Models with Panel Data ; D24 - Production; Capital and Total Factor Productivity; Capacity ; E22 - Capital; Investment (including Inventories); Capacity ; E24 - Employment; Unemployment; Wages
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013132153