Table 6 RULCs: actual and simulated
From: Real unit labour costs in Eurozone countries: drivers and clusters
\({\frac {\Delta RULC}{RULC_{t-1}}}\) | \({\frac {\Delta w_{t}}{w_{t-1}}}\) | \({({1-\alpha }_{t})}{\frac {\Delta K_{t}}{K_{t-1}}}\) | \({\frac {\Delta A_{t}}{A_{t-1}}}\) | Outcome | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
Actual | \(\checkmark \) | − | − | − | Clusters on actual aggregate data. | |||||
Simulation 1 | − | \(\checkmark \) | − | − | R U L C 1t in the absence of capital | |||||
intensity and TFP. | ||||||||||
Simulation 2 | − | − | \(\checkmark \) | − | R U L C 2t in the absence of real | |||||
wages and TFP. | ||||||||||
Simulation 3 | − | − | − | \(\checkmark \) | R U L C 3t in the absence of real | |||||
wages and capital intensity. | ||||||||||
Simulation 4 | − | \(\checkmark \) | \(\checkmark \) | − | R U L C 4t in the absence of TFP. | |||||
Simulation 5 | − | \(\checkmark \) | − | \(\checkmark \) | R U L C 5t in the absence of | |||||
capital intensity. | ||||||||||
Simulation 6 | − | − | \(\checkmark \) | \(\checkmark \) | R U L C 6t in the absence of real | |||||
real wages. | ||||||||||
Simulation 7 | − | \(\checkmark \) | \(\checkmark \) | \(\checkmark \) | R U L C 7t accounted for by the | |||||
three components (overall fit). |