From: Real unit labour costs in Eurozone countries: drivers and clusters
\({\frac {\Delta w_{t}}{w_{t-1}}}\) | \({{\small (1-\alpha }_{t}{\small)} \frac {\Delta K_{t}}{K_{t-1}}}\) | \({\frac {\Delta A_{t}}{A_{t-1}}}\) | Outcome | |||||
---|---|---|---|---|---|---|---|---|
Simulation 1 | \(\checkmark \) | − | − | R U L C 1t in the absence of capital | ||||
intensity and TFP. | ||||||||
Simulation 4 | \(\checkmark \) | \(\checkmark \) | − | R U L C 4t in the absence of | ||||
TFP. | ||||||||
Simulation 7 | \(\checkmark \) | \(\checkmark \) | \(\checkmark \) | R U L C 7t accounted for by the | ||||
three components (overall fit). |