Working Paper
The Modigliani Puzzle Revisited: A Note
Margarita Katsimi, Gylfi Zoega
CESifo, Munich, 2017
CESifo Working Paper No. 6833
CESifo, Munich, 2017
CESifo Working Paper No. 6833
We estimate the relationship between investment and unemployment in order to explore whether the medium-term relationship emphasized by Franco Modigliani survived the recent Great Recession. Our results indicate that the relationship held up, both employment and investment fell although the estimated coefficient of investment is slightly smaller when the period 2000-2015 is added to the 1960-2000 period.
CESifo Category
Fiscal Policy, Macroeconomics and Growth
Labour Markets
Fiscal Policy, Macroeconomics and Growth
Labour Markets
JEL Classification: J100, E200