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Table 2 Simulated RULCs

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
Simulation 7   \(\checkmark \)   \(\checkmark \)   \(\checkmark \)   R U L C 7t accounted for by the
         three components (overall fit).
  1. Note: See Table 7, where more scenarios are defined.