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Asymmetric unemployment rate dynamics in Australia

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Author Info

  • Gunnar Bårdsen

    ()
    (Norges Bank and Norwegian University of Science and Technology)

  • Stan Hurn

    (Queensland University of Technology)

  • Zoë McHugh

    (Royal Bank of Scotland)

Abstract

The unemployment rate in Australia is modelled as an assymmetric and non-linear function of aggregate demand, productivity, real wages and unemployment benefits. Negative changes in aggregate demand cause the unemployment rate to rise rapidly, while real wage rigidity contributes its to slow adjustment back towards a lower level of unem- ployment. The model is developed by exploiting recent developments in automated model-selection procedures.

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Bibliographic Info

Paper provided by School of Economics and Management, University of Aarhus in its series CREATES Research Papers with number 2010-02.

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Length: 24
Date of creation: 06 Jan 2010
Date of revision:
Handle: RePEc:aah:create:2010-02

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Web page: http://www.econ.au.dk/afn/

Related research

Keywords: unemployment; non-linearity; dynamic modelling; aggregate demand; real wages;

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References

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Citations

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Cited by:
  1. Ivan Kitov & Oleg Kitov, 2011. "The Australian Phillips curve and more," Papers 1102.1851, arXiv.org.
  2. Jennifer Castle & David Hendry, 2013. "Forecasting and Nowcasting Macroeconomic Variables: A Methodological Overview," Economics Series Working Papers 674, University of Oxford, Department of Economics.
  3. David Hendry & Felix Pretis, 2011. "Anthropogenic Influences on Atmospheric CO2," Economics Series Working Papers 584, University of Oxford, Department of Economics.

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