Preliminary communication
NAIRU estimates for Croatia
Valerija Botrić
orcid.org/0000-0001-5482-7490
; Department for economic growth, The Institute of Economics Zagreb, Zagreb, Croatia
Abstract
The main goal of the paper is to estimate the NAIRU for Croatian economy and to discuss the implications of this indicator. The paper provides time-varying estimates of the NAIRU for 2000q1-2011q1 period, which were obtained by applying the Kalman fi lter method. The results reveal that the average estimated value was 12.6 percent, which on average is below the average registered
unemployment rate. The dynamics of the estimated NAIRU points to the ability of the NAIRU to reveal underlying structural misbalances in a national economy. Specifi cally, the approaching crises effect has been detected, as well as previously documented infl ationary pressures, thereby confi rming the potential usefulness of the NAIRU estimation for economic policy decision making process in Croatia.
Keywords
NAIRU; Kalmanov filter; Hrvatska
Hrčak ID:
83355
URI
Publication date:
19.6.2012.
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