Open AccessUnemployment Hysteresis in the US and the EU: A Panel Data Approach
Author(s) -
Miguel A. LeónLedesma
Publication year - 2001
Publication title -
ssrn electronic journal
Language(s) - English
Resource type - Journals
ISSN - 1556-5068
DOI - 10.2139/ssrn.254108
Subject(s) - unemployment , hysteresis , panel data , economics , keynesian economics , econometrics , macroeconomics , physics , condensed matter physics
This paper applies the panel unit root test proposed by Im, Pesaran and Shin (1997) to test for unemployment hysteresis in the US states and the EU countries against the alternative of a natural rate. The results show that hysteresis for the EU and the natural rate for the US states are the most plausible hypotheses.
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