Short Run and Long Run Reasons That Affect The Nauri Model in Turkey

Cem Mehmet Baydur () and Bora Süslü ()
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Cem Mehmet Baydur: Muğla Sıtkı Koçman University
Bora Süslü: Muğla Sıtkı Koçman University

Business and Economics Research Journal, 2015, vol. 6, issue 1, 43-62

Abstract: In this article, the study is done with the view of Nauri model, Keynes and Classical doctrine. According to the Classical doctrine, while the ratio of technology and mark-up depends on data, the value balance of unemployment level is determined by the share that the employees get from the whole salary. Aggressive salary policy increases the natural unemployment level. According to Nauri, in the situations where the expectations of inflation is right, the natural unemployment level is determined with the demand of salary related to the ratio. To Keynes doctrine, the natural unemployment level is explained with the investment expenses and the demand side. From the point of view of Keynes, instability in investment expenses, insufficiency in demands, decreased productivity increase the natural unemployment level. In the light of this view, between 2000 and 2013, in Turkey the development of variations such as salary, growing, investment which affect Nairu is studied. The evaluation of the natural unemployment is examined from the point of Classical and Keynes doctrine. As a result, it is found that the factor which affects the unemployment in Turkey is insufficiency in the demand.

Keywords: Nairu; Keynesian doctrine; classic doctrine; ARDL (search for similar items in EconPapers)
JEL-codes: B22 E61 E66 (search for similar items in EconPapers)
Date: 2015
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