A new test for analysing hysteresis in European unemployment
This article proposes a new unit root test to analyse unemployment hysteresis. The test is able to incorporate cross-sectional dependence, unattended nonlinearity and unknown structural breaks in the time-series data. This study used data on unemployment in five European countries. The findings indi...
Saved in:
| Main Author: | |
|---|---|
| Format: | Article |
| Published: |
Taylor & Francis
2017
|
| Subjects: | |
| Online Access: | http://eprints.um.edu.my/17616/ http://dx.doi.org/10.1080/13504851.2016.1257209 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | This article proposes a new unit root test to analyse unemployment hysteresis. The test is able to incorporate cross-sectional dependence, unattended nonlinearity and unknown structural breaks in the time-series data. This study used data on unemployment in five European countries. The findings indicated that conventional unit root tests failed to reject the null hypothesis of hysteresis for all countries. However, the newly proposed unit root test was able to reject the null hypothesis for the Spanish unemployment rate. |
|---|