Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/311748 
Year of Publication: 
2025
Series/Report no.: 
EERI Research Paper Series No. 03/2025
Publisher: 
Economics and Econometrics Research Institute (EERI), Brussels
Abstract: 
This paper examines the relationship between unemployment rate, inflation rate and economic output in Britain over 34 years. It utilizes a range of different time series techniques, including the ADF and PP unit root test, the autoregressive distributed lag model to cointegration (ARDL model). The modelling provides some useful insights on both the long-run and short-run relationship between the variables. The following results have been produced: The unemployment time series bound test has shown to be inconclusive regarding a long-run relation, while the CPI bounds test showed to have a long-run relation with the other variables, and the bounds test for output showed only a short-run relation. The results in this paper are useful for further development and understanding of the topic and the dynamic interactions on a macroeconomic level.
Subjects: 
unemployment rate
inflation rate
output
bounds test
ARDL model
JEL: 
E10
C51
Document Type: 
Working Paper

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