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Explaining the Common Stochastic Trend in Spanish Regional Unemployment: Granger-Causality Analysis

In: Spanish Regional Unemployment

Author

Listed:
  • Alejandro García-Cintado

    (Pablo de Olavide University)

  • Diego Romero-Ávila

    (Pablo de Olavide University)

  • Carlos Usabiaga

    (Pablo de Olavide University)

Abstract

This chapter delves deeper into the likely sources of Spanish unemployment by making use of a broad collection of institutional and macroeconomic variables which, the economic literature suggests, can exert an influence on unemployment. Specifically, we focus on studying whether each variable individually considered Granger-causes the common factor of the unemployment rate and find that there is a wide range of macroeconomic and institutional variables that might be useful for anticipating a change in the unemployment rate. By determining the factors responsible for the common hysteretic patterns in Spanish unemployment, we will be in a position to suggest policies that can help tackle this problem.

Suggested Citation

  • Alejandro García-Cintado & Diego Romero-Ávila & Carlos Usabiaga, 2014. "Explaining the Common Stochastic Trend in Spanish Regional Unemployment: Granger-Causality Analysis," SpringerBriefs in Economics, in: Spanish Regional Unemployment, edition 127, chapter 0, pages 23-43, Springer.
    • Handle: RePEc:spr:spbchp:978-3-319-03686-1_3
    DOI: 10.1007/978-3-319-03686-1_3
    as

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