IDEAS home Printed from https://ideas.repec.org/a/hin/jnddns/981952.html
   My bibliography  Save this article

A Simple Nonlinear Dynamic Model for Unemployment: Explaining the Spanish Case

Author

Listed:
  • João Ricardo Faria
  • Miguel A. León-Ledesma

Abstract

Spanish unemployment is characterized by three distinct regimes of low, medium, and high unemployment and by a fast transition between them. This paper presents a simple nonlinear dynamic model that is able to explain this behavior with multiple equilibria and jumps describing the transition between equilibria. The model has only a small number of parameters capturing the fundamentals of labor markets and macroeconomic and institutional factors. The model is capable of generating unemployment dynamics that encompass the “unique” natural rate hypothesis, the structuralist hypothesis, and the hysteresis hypothesis.

Suggested Citation

  • João Ricardo Faria & Miguel A. León-Ledesma, 2008. "A Simple Nonlinear Dynamic Model for Unemployment: Explaining the Spanish Case," Discrete Dynamics in Nature and Society, Hindawi, vol. 2008, pages 1-11, August.
    • Handle: RePEc:hin:jnddns:981952
    DOI: 10.1155/2008/981952
    as

    Download full text from publisher

    File URL: http://downloads.hindawi.com/journals/DDNS/2008/981952.pdf
    Download Restriction: no
    File URL: http://downloads.hindawi.com/journals/DDNS/2008/981952.xml
    Download Restriction: no
    File URL: https://libkey.io/10.1155/2008/981952?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hin:jnddns:981952. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mohamed Abdelhakeem (email available below). General contact details of provider: https://www.hindawi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.