unemployment, cointegration, supply-side

Publication date: 23 Apr 2007 | Publication type: NIESR Discussion Paper | Authors: Kirby, S | JEL classification: C22; E24; J60 | NIESR discussion paper number: 293
Recent time series evidence favouring a supply-side interpretation of long-run unemployment in the UK is based on the finding of cointegration between unemployment and wage pressure variables. We show that this is necessary but not sufficient. The key assumptions in recent work, that a single...