Non-linear analysis of Post Keynesian Phillips curve in Canada labor market
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CitationBildirici, M., & Özaksoy, F. (2016). Non-linear analysis of Post Keynesian Phillips curve in Canada labor market. Procedia Economics and Finance, Volume 38, 368-377. http://dx.doi.org/10.1016/S2212-5671(16)30209-X
This paper aims to analyze Post-Keynesian Phillips Curve by using non-linear ARDL approach and non-linear Granger causality method for the period from 1957 to 2015 in Canada. This study is differed from other empirical paper by using non-linear ARDL method which determined there is long-run asymmetric relationship between the selected macroeconomic variables for Canada. Canada exhibits bi-directional causality relationship between inflation-unemployment, unemployment-economic growth and inflation-economic growth which refers that the country has flexible labor market.