NAIRU estimates in a transitional economy with an extremely high unemployment rate: The case of the Republic of Macedonia
The main goal of the paper is to estimate the NAIRU for the Macedonian economy and to discuss the applicability of this indicator. The paper provides time-varying estimates for the period 1998-2012, which are obtained using the Ball and Mankiw (2002) approach, supplemented with the iterativ...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Faculty of Economics, Belgrade
2015-01-01
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| Series: | Ekonomski Anali |
| Subjects: | |
| Online Access: | http://www.doiserbia.nb.rs/img/doi/0013-3264/2015/0013-32641506167T.pdf |
| Summary: | The main goal of the paper is to estimate the NAIRU for the Macedonian
economy and to discuss the applicability of this indicator. The paper
provides time-varying estimates for the period 1998-2012, which are obtained
using the Ball and Mankiw (2002) approach, supplemented with the iterative
procedure proposed by Ball (2009). The results reveal that the Macedonian
NAIRU has ahumpshaped path. The estimation is based on both the LFS
unemployment rate and the LFS unemployment rate corrected for employment in
the grey economy. The dynamics of the estimated NAIRU stress the ability of
the NAIRU to present the cyclical misbalances in a national economy. |
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| ISSN: | 0013-3264 1820-7375 |