produces a unique long-run NAIRU while the other implies the presence of aspiration-induced hysteresis in the employment rate …The influence of NAIRU theory on economic policy is both puzzling and unfortunate, especially in a European context …. This paper shows that standard rationality assumptions and objective functions may fail to generate a well-defined NAIRU in …

This paper analyses the Nairu in the Euro Area and the influence that hysteresis had on its development. Using the … is applied here using explicit exogenous variables. In order to test for hysteresis, the dependence of the Nairu on … Kalman-filter technique we find that the Nairu has varied considerably since the early seventies. The Kalman-filter technique …

so that our identification is not affected by the Faust andLeeper (1997) critique. We find widespread hysteresis: demand …-teractions with structural shocks and other institutions as crucial determinantsof hysteresis. …

This note gives a brief survey of main theoretical and empirical issues with respect to the NAIRU concept. According to … modern labour market literature NAIRU is defined as the rate of unemployment at which inflation stabilizes in the absence of … any wage-price surprises. Conventional thinking about the equilibrium unemployment rate assumes that in the long run NAIRU …

The structural rate of unemployment and associated non-accelerating inflation rate of unemployment (the NAIRU) are of … representing the NAIRU as currently used by the OECD in its policy analysis and surveillance work. Three distinct classes of NAIRU …

hysteresis in five European countries: France, Italy, the Netherlands, Sweden and the United Kingdom. Unit root tests applied in … hysteresis in the five countries. Caution should therefore be made when applying the ADF–SB and FADF–SB tests …