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Asymmetry in the business cycle: Evidence from the Australian labour market

  • Peat, Maurice
  • Stevenson, Max
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    Cyclical asymmetry has been recognised as a nonlinear phenomenonin recent studies examining unemployment rate time series. In this paper we use a number of established and new tests for identifying nonlinearities of the bilinear (BL), exponential autoregressive (EXPAR), smooth transition autoregressive (STAR), and self-exciting threshold autoregressive (SETAR) types as they occur in time series of the seasonally differenced logarithm of monthly Australian aggregate and regional unemployment rates. After identifying nonlinearity of a particular form within a given time series, the appropriate model is fitted and representations from the model analysed for their cyclical behaviour.

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    Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

    Volume (Year): 30 (1996)
    Issue (Month): 3 (September)
    Pages: 353-368

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    Handle: RePEc:eee:jeborg:v:30:y:1996:i:3:p:353-368
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