§ Mr. MitchellTo ask the Chancellor of the Exchequer what assumptions about Non-Accelerating Inflation Rate of Unemployment are incorporated in(a) the Treasury and (b) the Bank of England model of the economy; and how they have been changed in the last 10 years. [52156]
§ Mrs. LiddellThe assumptions underlying the determination of the non-accelerating rate of unemployment in the Treasury model are set out in the "The New Treasury Model" by Chan, A., Savage, D., and Whittaker, R., (Government Economic Service Working Paper no. 128), a copy of which is available in the Library of the House. The underlying assumptions have changed little in recent years. The Bank of England model is the responsibility of Bank officials.
§ Mr. MitchellTo ask the Chancellor of the Exchequer what assumptions about the relative shares of GDP going to(a) wages and (b) profits are incorporated into the Treasury model of the economy; what are the shares presently allocated; and how they have changed over the last 10 years. [52155]
23W
§ Mrs. LiddellThe assumptions in the Treasury model yield approximately constant shares of GDP going to wages and profits in the long run. The long run shares will largely reflect historical averages.