Kim, Chang-jin (contributor); Morley, James C. (contributor) - 2004 - [Elektronische Ressource], rev.
analysis to Blanchard and Quah’s (1989) structural
VAR model of output growth and the unemployment rate. The model has three … growth and the unemployment rate:
tt
ecYL +=Φ )(, ),0(~ ΩNe
t
, (4)
where ()
′
Δ≡
ttt
uyY , ,
∑
=
Φ−≡Φ
p
k
k
k
LIL … . That is,
output growth and the unemployment rate depend on current and lagged values of aggregate
supply shocks (ε
t
AS …