Lang, Dany; Setterfield, Mark; Shikaki, Ibrahim - In: European Journal of Economics and Economic Policies: … 17 (2020) 1, pp. 19-38
We address the question posed in the title of this paper by investigating recent developments in the literature that estimates the NAIRU. A necessary condition for the existence of a NAIRU is dynamic homogeneity: the Phillips curve should be homogeneous of degree one in lagged and/or expected...