Unemployment Dynamics: An Unobserved Components Approach

Rünstler, Gerhard (March 1998) Unemployment Dynamics: An Unobserved Components Approach. Former Series > Working Paper Series > IHS Economics Series 53


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Abstract: The study uses a bivariate unobserved components model for output and the unemployment rate in order to examine stylised facts of the cyclical behaviour of unemployment and to estimate the size of persistence. The model is applied to the U.S ., Canada, and major European economies. Estimates of cyclically adjusted unemployment rates are obtained that account for persistence effects and are subject to considerably smaller confidence bounds compared to approaches based on wage and price setting equations.;

Item Type: IHS Series
Keywords: 'Trend-and-Cycle Decomposition' 'Persistence' 'Multivariate Stochastic Cycles'
Classification Codes (e.g. JEL): C22, E30
Date Deposited: 26 Sep 2014 10:36
Last Modified: 27 Sep 2019 06:32
URI: https://irihs.ihs.ac.at/id/eprint/1065

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