This paper estimates a VAR including labor productivity, real wage and unemployment rate, to identify the dynamic effects of technology, demand and mark up shocks, respectively, on the Italian labor market. Identification is achieved by imposing recursive restrictions on the matrix of long run multipliers. Our results show that both mark up and aggregate demand shocks permanently reduce the unemployment rate. Finally, technology shocks do not significantly affect the unemployment rate in the long run. These findings convey important policy implications: expansionary aggregate demand and deregulation policies reducing the mark up permanently decrease the Italian unemployment rate.

The long run effects of aggregate demand and mark up shocks on Italian unemployment rate / Pistoresi, Barbara; Gambetti, L.. - In: EMPIRICAL ECONOMICS. - ISSN 0377-7332. - STAMPA. - 29:(2004), pp. 209-226. [10.1007/s00181-003-0159-3]

The long run effects of aggregate demand and mark up shocks on Italian unemployment rate

PISTORESI, Barbara;
2004

Abstract

This paper estimates a VAR including labor productivity, real wage and unemployment rate, to identify the dynamic effects of technology, demand and mark up shocks, respectively, on the Italian labor market. Identification is achieved by imposing recursive restrictions on the matrix of long run multipliers. Our results show that both mark up and aggregate demand shocks permanently reduce the unemployment rate. Finally, technology shocks do not significantly affect the unemployment rate in the long run. These findings convey important policy implications: expansionary aggregate demand and deregulation policies reducing the mark up permanently decrease the Italian unemployment rate.
2004
29
209
226
The long run effects of aggregate demand and mark up shocks on Italian unemployment rate / Pistoresi, Barbara; Gambetti, L.. - In: EMPIRICAL ECONOMICS. - ISSN 0377-7332. - STAMPA. - 29:(2004), pp. 209-226. [10.1007/s00181-003-0159-3]
Pistoresi, Barbara; Gambetti, L.
File in questo prodotto:
File Dimensione Formato  
EE.pdf

Accesso riservato

Tipologia: Versione dell'autore revisionata e accettata per la pubblicazione
Dimensione 318.05 kB
Formato Adobe PDF
318.05 kB Adobe PDF   Visualizza/Apri   Richiedi una copia
Pubblicazioni consigliate

Licenza Creative Commons
I metadati presenti in IRIS UNIMORE sono rilasciati con licenza Creative Commons CC0 1.0 Universal, mentre i file delle pubblicazioni sono rilasciati con licenza Attribuzione 4.0 Internazionale (CC BY 4.0), salvo diversa indicazione.
In caso di violazione di copyright, contattare Supporto Iris

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11380/609149
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 4
  • ???jsp.display-item.citation.isi??? ND
social impact