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- W1546218930 abstract "This paper examines the issue of the impact of aggregation in the empirical analysis of euro area labour markets. A Phillips Curve describing the adjustment of unit labour costs is estimated at the national and aggregate level for the 5 largest euro area countries. Potential sources of aggregation bias are investigated - such as differences in parameter coefficients and a lack of correlation in the independent variables across countries - as well as the potentially offsetting statistical averaging effect. Finally the out-of-sample forecasting performance of both approaches is evaluated. The results point to some limited advantages of analysing wage developments at the national rather than at the area-wide level. The paper concludes that if major advantages in undertaking national analysis do exist, they are likely to arise from the ability to develop country-specific structures for the Phillips Curves and not from aggregation biases that emerge when a common structure is used." @default.
- W1546218930 created "2016-06-24" @default.
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- W1546218930 date "2003-12-19" @default.
- W1546218930 modified "2023-10-01" @default.
- W1546218930 title "Aggregation and euro area Phillips curves" @default.
- W1546218930 cites W2166436362 @default.
- W1546218930 doi "https://doi.org/10.4337/9781843769682.00015" @default.
- W1546218930 hasPublicationYear "2003" @default.
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