The results conform to the findings of Shifotoka that revealed the existence of the short-run Phillips curve in Namibia. Discussion paper series, ISSN Welcome to Reddit, the front page of the internet. Investigations that utilised data for the earlier years, before to be precise, bore semblance to the short-run Phillips. The Phillips curve suggests a contrary relationship between the rates of inflation and unemployment.
Bivariate models The three models can be generally written as follows: ADF test takes into account and corrects the presence of auto correlation present by entering lagged values for the dependent variables in the regression. The next chapter goes further explaining the methodological approach that is used in the paper and defining the data and data sources included in the study. Inflation trends Inflation Rate 14 12 10 8 6 4 2 0 Source: Background of the study Nevertheless the analysis of Shifotoka was also based on three variables, yet she had used the bank rate instead of real GDP.
Empirical Literature Review Numerous okhns have empirically investigated the relevance of the Phillips curve in different countries on the basis of macroeconomic variables. Perhaps the data you have is by state?
Johannes Hadula and to my beloved parents Mr. He had used quarterly time series data for the economy of the United States of America from toand he found out that inflation and employment were inversely related, showing that the US economy corresponds to the Phillips curve. Chapter Three focuses on relevant theoretical literature and reviews the empirical evidence carried out by other researchers.
Help Center Find new research papers in: Unit root test When analysing data, the first step is testing for unit root, which is carried forth to evade the generation of spurious regressions. On the other hand, PP test tnesis the test statistics to account for serial correlation and it usually gives identical conclusions as the ADF test.
However, he used the data for the early s when the economy was still unstable, as the country had just gained its independence in This was outlandish news to the policymakers, yet a good news on the other hand knowing that the rates of both inflation and unemployment cannot be high concurrently. Dhanmanjiri Sathe for her professional guidance throughout my thesis.
The major factors that exacerbated unemployment in Namibia since independence are identified by Mwingaas population growth, rise in female labor force participation, fast growing young unskilled labor force, low employment intensity of economic GDP growth, insufficient effective demand and Supply-driven training.
This is consistent not only with theoretical concepts, okkuns also with how the educated public intuitively understands economic performance Singer Lastly, R of the third model for equation: With regards to inflation and unemployment, policymakers lwa to have curbed rates of inflation and unemployment simultaneously.
Its measurements and significance. However, the P-values are less than the level of significance. By Syed hassan Raza. I honestly would pick something else if you haven’t learned panel already because the 2SLS methods that are more commonly used in research are more commonly masters or PhD level methods.
(PDF) The Relevance of The Phillips pdf | Johanna Pangeiko Nautwima –
There is unit root non-stationary Ha: Her results resemble the findings of Kurnstshowing an inverse relationship between inflation and unemployment, which confirmed the existence of the Phillips curve in Namibia. Error T-test Significant level Constant ADF and PP in levels and first difference As other people are saying it would be better to approach it with a time series analysis unfortunately, I think that they don’t teach that at the undergrad level program in Economicsbut you can always just use an OLS.
Generally, the high 2 2 the level of R the better the model fits the data. Init had declined by 1. There is significant relationship between inflation and unemployment. Investigations that utilised data for the earlier years, before to be lae, bore semblance to the short-run Phillips.
However, the macroeconomic goals desire both low rates of inflation and unemployment, stable prices, as well as high real GDP. F-Testing The F-test shows the overall performance of the regression model.
Computational Economics and Econometrics, Vol. Moreover, the Phillips curve holds up only in the short run, unlike in the long run when the two variables are unrelated. thdsis
Federal Reserve Bank of Boston. Click here to sign up. The Long-run Phillips curve The unit root is popular in economics, as it tests for time series variables Gujaratip. Enhancing Competitiveness in Four African Economies: