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Asymmetric unemployment rate dynamics in Australia

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Author Info

  • Gunnar Bardsen

    ()
    (Norwegian University of Science and Technology)

  • Stan Hurn

    ()
    (QUT)

  • Zoe McHugh

    (Aberdeen Asset Managers Limited)

Abstract

The unemployment rate in Australia is modelled as an asymmetric and nonlinear function of aggregate demand, productivity, real interest rates, the replacement ratio and the real exchange rate. If changes in unemployment are big, the management of of demand, real interest rates and the replacement ratio will be good instruments to start bringing it down. The model is developed by exploiting recent developments in automated model-selection procedures.

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Bibliographic Info

Paper provided by National Centre for Econometric Research in its series NCER Working Paper Series with number 71.

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Length: 19 pages
Date of creation: 15 Feb 2011
Date of revision:
Handle: RePEc:qut:auncer:2011_2

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Fax: 07 3138 1500
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Related research

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

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References

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Cited by:
  1. David Hendry & Felix Pretis, 2011. "Anthropogenic Influences on Atmospheric CO2," Economics Series Working Papers 584, University of Oxford, Department of Economics.
  2. Kitov, Ivan & Kitov, Oleg, 2011. "The Australian Phillips curve and more," MPRA Paper 28762, University Library of Munich, Germany.
  3. Jennifer Castle & David Hendry, 2013. "Forecasting and Nowcasting Macroeconomic Variables: A Methodological Overview," Economics Series Working Papers 674, University of Oxford, Department of Economics.

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