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The Relationships between Permanent and Transitory Movements in U.S. Output and the Unemployment Rate

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  • TARA M. SINCLAIR

Abstract

This paper estimates the permanent and transitory movements in U.S. output and the unemployment rate and the relationships between them. The results suggest that permanent movements in U.S. output and the unemployment rate are important for explaining overall fluctuations. Further, the correlation between changes in these series arises in large part due to the relationship between their permanent components.

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  • Tara M. Sinclair, 2009. "The Relationships between Permanent and Transitory Movements in U.S. Output and the Unemployment Rate," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 41(2‐3), pages 529-542, March.
    • Handle: RePEc:wly:jmoncb:v:41:y:2009:i:2-3:p:529-542
    DOI: 10.1111/j.1538-4616.2009.00220.x
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