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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).