TY  - JOUR
AU  - Fair,Ray C.
TI  - Estimated Trade-Offs Between Unemployment and Inflation
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1377
PY  - 1984
Y2  - June 1984
UR  - http://www.nber.org/papers/w1377
L1  - http://www.nber.org/papers/w1377.pdf
N1  - Author contact info:
Ray C. Fair
Cowles Foundation
P.O. Box 208281
Yale University
New Haven, CT  06520-8281
E-Mail: ray.fair@yale.edu
AB  - Three models of price and wage behavior are estimated and tested in this paper. Model 1 is one in which the long-run trade-off between unemployment and inflation is in terms of price levels; Model 2 is one in which the trade-off is in terms of rates of change; and Model 3 is one in which there is no long-run trade-off. The evidence favors Model 1 over Models 2 and 3. The comparison between Models 2 and 3 is inconclusive. The short-run trade-offs are greater for Model 1 than for Models 2 and 3. The fact that Model 3 did not do particularly well is evidence against the Friedman-Phelps proposition of no long-run trade-off.
ER  -