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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

        

TFP.

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.