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A new approach is proposed for estimating potential output and the NAIRU. Identification is achieved using Okun's law and a Phillips curve. The performance of the methodology is exemplified using data from Canada, the UK, and the US.
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series labour productivity (prod), employment (e), unemployment rate (U), real wages (rw).This notion was definitively … variables will only be -0.003 for real wages or -0.3%, -0.001 for unemployment or -0.1%, -0.000 for productivity or -0%,and -0 …% for employment. This means that Canadian labour market is in equilibrium working at natural rate of unemployment and by …
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