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Hysteresis in Unemployment for G-7 Countries: Threshold Unit Root Test

  • Chang, Tsangyao

    ()

    (Department of Finance, Feng Chia University, Taichung, Taiwan.)

  • Lee, Chia-Hao

In this empirical study, we apply the threshold unit root test proposed by Caner and Hansen (2001) to re-examine the hysteresis hypothesis in unemployment for G-7 countries over the period 1992M1 to 2008M9. The hysteresis in unemployment is confirmed for three countries, namely France, Germany and Italy when Caner and Hansen’s (2001) threshold unit root test is conducted.

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File URL: http://www.ipe.ro/rjef/rjef4_11/rjef4_2011p5-14.pdf
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Article provided by Institute for Economic Forecasting in its journal Romanian Journal for Economic Forecasting.

Volume (Year): (2011)
Issue (Month): 4 (December)
Pages: 5-14

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Handle: RePEc:rjr:romjef:v::y:2011:i:4:p:5-14
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