This paper empirically examines whether the productivity-based explanation for the time-varying US NAIRU is valid. We apply a novel filter known as the ld fused lasso. This procedure enables us to estimate the mean tr...This paper empirically examines whether the productivity-based explanation for the time-varying US NAIRU is valid. We apply a novel filter known as the ld fused lasso. This procedure enables us to estimate the mean trend of the labor productivity as a step function, without specifying the location and number of breaks a priori. This paper reports that although there exists an impressive similarity between the US NAIRU and the US labor productivity, changes in the US labor productivities do not necessarily lead to changes in the US NAIRU.展开更多
文摘This paper empirically examines whether the productivity-based explanation for the time-varying US NAIRU is valid. We apply a novel filter known as the ld fused lasso. This procedure enables us to estimate the mean trend of the labor productivity as a step function, without specifying the location and number of breaks a priori. This paper reports that although there exists an impressive similarity between the US NAIRU and the US labor productivity, changes in the US labor productivities do not necessarily lead to changes in the US NAIRU.
