Indeed, another study, using a co-integration framework, has found that deviations of ULC from its long-term equilibrium value take longer to adjust in the euro area countries than in the States in the US. 2  1  See Dullien and Fritsche (2006), How bad is Divergence in the Euro-Zone? Lessons from the United States of America and Germany.
University of Hamburg, Department of Economics and Politics Discussion Papers, Macroeconomics and Finance Series 5/2006. 2  Dullien and Fritsche (2007). Does the Dispersion of Unit Labor Cost Dynamics in the EMU Imply Long-run divergence? Results from a Comparison with the United States of America and Germany, University of Hamburg, Department of Economics and Politics Discussion Paper, Macroeconomics and Finance Series, 2/2007.