Rational Expectations and Labour Market Equilibrium in Britain 1855-1913 |
Common terms and phrases
4th order serial BP4 and LM4 CATHERWOOD LIBRARY Centre for Economic Cornell University cross equation restrictions current value demand equation distributed lag Duke of York Economic Policy Research economy ElnW employment rate estimating equation EXPECTATIONS AND LABOUR expected wage formed by 16 formed rationally GDP deflator given in Table InER instrumental variables L.H.S. Variable labour demand function labour force LABOUR MARKET EQUILIBRIUM labour supply function lagged dependent variable lagged values Lagrange Multiplier tests living index LM4 are test lnWt maintained hypothesis market clearing natural rate null hypothesis order serial correlation original Phillips curve output parameter estimates rate of employment rational expectations real wage rejected restricted model Restricted Table restrictions implied returns to scale specification structural equation structural model substituting back surprise supply function test statistics tests for 4th TJ Hatton types of restrictions wage and employment wage change wage rate wage surprise