Asymmetry in the Business Cycle: Evidence from the Australian Labour Markets
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.
|Date of creation:||01 Jun 1994|
|Date of revision:|
|Publication status:||Published as: Peat, M. and Stevenson, M. 1996, "Asymmetry in the Business Cycle: Evidence from the Australian Labour Market", Journal of Economic Behavior and Organization, 30(3), pp. 353-368.|
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