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Tag Archives: AHETPI

Replicating economic research…on gasoline affordability

[embedded content] Here at the FRED Blog, we believe it’s important to be able to replicate economic analysis, which begins by identifying the data used in that analysis. That’s why FRED Blog posts include a list of the data series used to build the graphs. Moreover, all FRED data series themselves include a suggested citation. The FRED graph above can help us reproduce some research published in our Economic Synopses series: “Gasoline Affordability.” The essay, published in 2004,...

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Has wage growth been slower than normal in the current business cycle?

[embedded content] You may have read in the popular press that wage growth seems much slower since the Great Recession compared with previous business cycles. Let’s see what FRED data can tell us. The graph above shows wage growth, defined as the annualized percentage change in the average hourly earnings of private production and nonsupervisory employees. To interpret the graph, note the gray bars, which indicate recessions since 1976, and the green vertical lines, which indicate the...

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Testing theory: marginal product and wages

[embedded content] Economic theory tells us that, in a perfectly competitive labor market, labor should be paid according to its “marginal product.” Now, without the jargon: The last workers to be hired by a business should receive pay that is equal to their contribution to the output of that business. So, let’s compare the data with the theory… Unfortunately, we have no data on the marginal product. But fortunately, we have data on average product. Although it’s not a certainty, these...

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