examining the relationship between inflation and unemployment, which sheds light on these developments. The theoretical section … separately, including Phillips curve `level effects', hysteresis `change effects', the error-correction mechanism, and the role … identical estimates of the Phillips curve slope, of the hysteresis effect, and of the NAIRU. The two countries also share …

shifts in the parameters of wage equations when the process generating price inflation changes. The two major shifts that we …

model, covering a panel of EU countries, and derives the implied long-run inflation-unemployment tradeoff. Our results …

We develop and estimate a structural model of inflation that allows for a fraction of firms that use a backward looking … measures of marginal cost as the relevant determinant of inflation, as the theory suggests, instead of an ad-hoc output gap …. Real marginal costs are a significant and quantitatively important determinant of inflation. Backward looking price setting …

inflation and a permanent reduction in the level of unemployment. In short, we derive a microfounded long-run downward …

This paper estimates the NAIRU (standing for the Non-Accelerating Inflation Rate of Unemployment) as a parameter that … varies over time. The NAIRU is the unemployment rate that is consistent with a constant rate of inflation. Its value is … determined in an econometric model in which the inflation rate depends on its own past values (‘inertia’), demand shocks proxied …

Spanish manufacturing firms, the paper finds sunk costs hysteresis in entry and exit to be an important factor in determining … much larger than the costs of exiting the market. Finally, although hysteresis exists, its effect on the responsiveness of …

This paper presents an empirical examination of the importance of hysteresis in international trade. An econometric … model of export determination is developed where the presence of sunk costs causes discontinuous behaviour and hysteresis so … States. The paper finds strong evidence in favour of the presence of pricing-to-market and hysteresis only in the case of …

This paper provides a model of "social hysteresis," whereby long, deep recessions demotivate workers and thereby lead …