a = -(D3 log W)/DU
which, in turn, is used to give the estimated NAWRU as:
(4)
NAWRU =U-(DU/D3logW)D2logW . (5)
The resulting NAWRU series is then smoothed, again using a Hodrick-Prescott filter to eliminate
erratic movements. The information utilised in the above expression for the NAWRU is
endogenised. Both the unemployment and the real wage rates result from a consistent
neoclassical labour model (distinguishing between the skilled and unskilled markets), which in
turn forms part of a supply-side model (see figure1) for South Africa where prices are also
endogenously determined by the system as a whole. This measure for the NAWRU can
therefore be classified as a wage-price model approach.
Figure 1: Supply-side structure of the macro-econometric model

More intriguing information
1. Estimation of marginal abatement costs for undesirable outputs in India's power generation sector: An output distance function approach.2. Government spending composition, technical change and wage inequality
3. The name is absent
4. The name is absent
5. The name is absent
6. The name is absent
7. The name is absent
8. Weather Forecasting for Weather Derivatives
9. The name is absent
10. Structural Breakpoints in Volatility in International Markets