A new test for analysing hysteresis in European unemployment

Furuoka, F. (2017) A new test for analysing hysteresis in European unemployment. Applied Economics Letters, 24 (15). pp. 1102-1106. ISSN 1350-4851, DOI https://doi.org/10.1080/13504851.2016.1257209.

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Official URL: http://dx.doi.org/10.1080/13504851.2016.1257209


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.

Item Type: Article
Uncontrolled Keywords: Unemployment hysteresis; Europe; Unit root; Cross-sectional dependence; Fourier function approximation
Subjects: H Social Sciences > HD Industries. Land use. Labor
Depositing User: Ms. Juhaida Abd Rahim
Date Deposited: 04 Aug 2017 01:43
Last Modified: 04 Aug 2017 01:43
URI: http://eprints.um.edu.my/id/eprint/17616

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