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Evidence and Theory on the Cyclical Asymmetry in Unemployment Rate Fluctuations

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  • David Andolfatto

Abstract

A number of recent empirical studies have identified the presence of a cyclical asymmetry in unemployment rate fluctuations. In particular, during a recession the unemployment rate increases sharply, while during an expansion the unemployment rate declines only gradually. The purpose of this paper is to demonstrate that this cyclical asymmetry can be explained in an empirically plausible manner by the optimal search activities of individuals in the economy.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 30 (1997)
Issue (Month): 3 (August)
Pages: 709-21

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Handle: RePEc:cje:issued:v:30:y:1997:i:3:p:709-21

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Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
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Cited by:
  1. Gunnar Bardsen & Stan Hurn & Zoe McHugh, 2011. "Asymmetric unemployment rate dynamics in Australia," NCER Working Paper Series 71, National Centre for Econometric Research.
  2. repec:ebl:ecbull:v:3:y:2002:i:11:p:1-13 is not listed on IDEAS

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