Dolado, Juan JoséLópez-Salido, J. DavidBalmaseda, Manuel2009-02-032010-02-082009-02-032010-02-082000-01Oxford Economic Papers, 2000, 52, 1, p. 2-231464-3812https://hdl.handle.net/10016/3272This paper uses a set of plausible long-run identifying restrictions on a three-variable system, including output growth, real wage growth, and the unemployment rate, to isolate three independent structural shocks which drive fluctuations in those variables in a sample of 16 OECD countries during 1950-96. These shocks are interpreted as aggregate demand, productivity, and labour supply disturbances. As a by-product of the previous analysis, the cyclical behaviour of real wages in response to a demand shock is re-examined and two indices of real wage rigidity are derived.text/plainapplication/pdfeng© Oxford University Pressresearch articleEconomía10.1093/oep/52.1.3open access