The Korean Economic Review
Uncertainty Surrounding The U.S. NAIRU Estimates Of Estrella And Mishkin(1999)
Cyarles Harvie / Hyeon Seung HuhYear 2007Vol. 23No. 1
Estrella and Mishkin(1999) propose a promising method to estimate theNAIRU for the U.S. However, their uncertainty measure of the NAIRUestimates is problematic, as the underlying assumption of normality isviolated. We apply the block bootstrap techniques to offer a better measureof precision. One implication is that their method underestimates the trueuncertainty surrounding the NAIRU estimates.