Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/18024
Authors: 
Hall, Stephen G.
Driver, Ciaran F.
Year of Publication: 
2008
Citation: 
[Journal:] Economics: The Open-Access, Open-Assessment E-Journal [Volume:] 2 [Issue:] 2008-11 [Pages:] 1-15 [DOI/URN:] doi:10.5018/economics-ejournal.ja.2008-11
Abstract: 
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.
Subjects: 
Capital
labour
constraints
NAIRU
panel data
structural breaks
JEL: 
C23
D24
E22
E24
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by-nc/2.0/de/deed.en
Document Type: 
Article

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