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A suggestion for a simple cross-country empirical proxy for trend unemployment

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  • Stephen Murchison
  • Pierre Siklos

Abstract

We propose a proxy for trend unemployment derived from the cointegration property between unemployment rates and world oil prices. Evidence from a sample of OECD countries is presented in support of the hypothesis. We argue that our empirical proxy is superior from an economic perspective to at least one popular empirical alternative and may be especially useful in cross-country type studies.

Suggested Citation

  • Stephen Murchison & Pierre Siklos, 1999. "A suggestion for a simple cross-country empirical proxy for trend unemployment," Applied Economics Letters, Taylor & Francis Journals, vol. 6(7), pages 447-451.
    • Handle: RePEc:taf:apeclt:v:6:y:1999:i:7:p:447-451
    DOI: 10.1080/135048599352970
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    References listed on IDEAS

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    7. Hooker, Mark A., 1996. "What happened to the oil price-macroeconomy relationship?," Journal of Monetary Economics, Elsevier, vol. 38(2), pages 195-213, October.
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