Unit Root in the Wage-Price Spiral Is Not Hysteresis in Unemployment
Hysteresis is one of the main concepts used in Layard, Nickell and Jackman's book, Unemployment: Macroeconomic Performance and the Labour Market. Attempts to clarify the concept of hysteresis, from its formal representation to its empirical applications. Emphasizes the idea that hysteresis refers back to a given set of formal properties, independently of the phenomenologies within which it is liable to be encountered. In economics, the fields concerned may indeed vary a lot (labour market, foreign trade, etc.). By highlighting all the formal properties of hysteresis, shows how the assimilation of phenomena characterized by a zero eigenvalue for linear systems (or unit-root systems for discrete-time processes) is wrong and, moreover, how the imprecise use of the concepts can lead to the particular constraints affecting unit-root econometrics being overlooked.
Volume (Year): 20 (1993)
Issue (Month): 1/2 (January)
|Contact details of provider:|| Web page: http://www.emeraldinsight.com|
|Order Information:|| Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK|
Web: http://www.emeraldinsight.com/jes.htm Email:
When requesting a correction, please mention this item's handle: RePEc:eme:jespps:v:20:y:1993:i:1/2:p:123-135. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Virginia Chapman)
If references are entirely missing, you can add them using this form.