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Inflation as a function of labor force change rate: cointegration test for the USA

Kitov, Ivan et al.
Munich Personal RePEc Archive · Reports
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inflation
Previously, a linear and lagged relationship between inflation and labor force change rate, π(t)= A1dLF(t-t1)/LF(t-t1)+A2 (where A1 and A2 are empirical country-specific coefficients), was found for developed economies. The relationship obtained for the USA is characterized by A1=4.0, A2=-0.03075, a
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