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Does unemployment hysteresis falsify the natural rate hypothesis? a meta‐regression analysis

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  • T. D. Stanley

Abstract

. A quantitative survey of 24 studies containing 99 national estimates of unemployment persistence reinstates unemployment hysteresis as a viable falsifying hypothesis to the natural rate hypothesis. Empirical evidence to the contrary may be attributed to small‐sample, misspecification and publication biases. Larger estimates of unemployment persistence are produced by models that use more information (t = 9.03; P

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  • T. D. Stanley, 2004. "Does unemployment hysteresis falsify the natural rate hypothesis? a meta‐regression analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 18(4), pages 589-612, September.
    • Handle: RePEc:bla:jecsur:v:18:y:2004:i:4:p:589-612
    DOI: 10.1111/j.0950-0804.2004.00231.x
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    20. Marc Lavoie & Eckhard Hein, 2015. "Going from a low to a high employment equilibrium," IMK Working Paper 144-2015, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
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    22. Sujit Kapadia, 2005. "Optimal Monetary Policy under Hysteresis," Economics Series Working Papers 250, University of Oxford, Department of Economics.
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