Hall, Stephen G.; Driver, Ciaran F. - In: Economics: The Open-Access, Open-Assessment E-Journal 2 (2008) 2008-11, pp. 1-15
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...