Estimating natural rate of unemployment (NAIRU) is important for understanding the joint dynamics of unemployment … with NAIRU in a model consistent way. We develop and estimate a structural model with forward and backward looking Phillips … out that the estimated NAIRU using our methodology tracks the unemployment process closely except for the high inflation …

We propose marginal integration estimation and testing methods for the coefficients of varying coefficient multivariate … regression model. Asymptotic distribution theory is developed for the estimation method which enjoys the same rate of convergence … as univariate function estimation. For the test statistic, asymptotic normal theory is established. These theoretical …