Production Constraints and the NAIRU-Reference-Cited by-同舟云学术

Production Constraints and the NAIRU

Published:2008-04-08 Issue:1 Volume:2 Page:
ISSN:1864-6042
Container-title:Economics
language:en
Short-container-title:

Author:

Driver Ciaran¹,Hall Stephen G.²

Affiliation:

1. Tanaka Business School, Imperial College , University of London

2. Department of Economics , University of Leicester

Abstract

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.

Publisher

Walter de Gruyter GmbH

Subject

General Economics, Econometrics and Finance

Link

https://www.degruyter.com/document/doi/10.5018/economics-ejournal.ja.2008-11/pdf

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