Short run result
| Labour market-led situation (Equation 12E) | Cost effect condition (Equation 13E) | ||
|---|---|---|---|
| Variable | Coefficient | Variable | Coefficient |
| Constant | −1.7925 | Constant | 0.0057 |
| (1.3994) | (0.0039) | ||
| EMPLOYMENTRATE(−1) | 2.3098 | WAGESHARE | −0.0163 |
| (1.8216) | (0.0131) | ||
| D(EMPLOYMENTRATE) | 3.2369 | D(EMPLOYRATE(−1)) | −0.0793 |
| (2.2876) | (0.3467) | ||
| D(EMPLOYMENTRATE(−1)) | 1.4571 | D(EMPLOYRATE(−2)) | −0.2437 |
| (2.5722) | (0.1768) | ||
| D(EMPLOYMENTRATE(−2)) | −4.5825 | D(WAGESHARE) | (0.0466) |
| (2.5842) | (0.0564) | ||
| D(EMPLOYMENTRATE(−3)) | −3.4620 | CointEq(−1) | −1.579*** |
| (2.5026) | (0.4459) | ||
| CointEq(−1) | −0.8719*** | ||
| (0.1839) | |||
| Labour market-led situation ( | Cost effect condition ( | ||
|---|---|---|---|
| Variable | Coefficient | Variable | Coefficient |
| Constant | −1.7925 | Constant | 0.0057 |
| (1.3994) | (0.0039) | ||
| EMPLOYMENTRATE(−1) | 2.3098 | WAGESHARE | −0.0163 |
| (1.8216) | (0.0131) | ||
| D(EMPLOYMENTRATE) | 3.2369 | D(EMPLOYRATE(−1)) | −0.0793 |
| (2.2876) | (0.3467) | ||
| D(EMPLOYMENTRATE(−1)) | 1.4571 | D(EMPLOYRATE(−2)) | −0.2437 |
| (2.5722) | (0.1768) | ||
| D(EMPLOYMENTRATE(−2)) | −4.5825 | D(WAGESHARE) | (0.0466) |
| (2.5842) | (0.0564) | ||
| D(EMPLOYMENTRATE(−3)) | −3.4620 | CointEq(−1) | −1.579*** |
| (2.5026) | (0.4459) | ||
| CointEq(−1) | −0.8719*** | ||
| (0.1839) | |||
Note(s): Standard error in parenthesis and *** indicate the statistical significance at the 1% level respectively
Source(s): Authors’ calculation