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THE UNEMPLOYMENT RATE WHEN THE LABOUR MARKET IS MODELLED BY A MARKOV CHAIN
Author(s) -
Klebaner Fima C.
Publication year - 1988
Publication title -
australian journal of statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.434
H-Index - 41
eISSN - 1467-842X
pISSN - 0004-9581
DOI - 10.1111/j.1467-842x.1988.tb00848.x
Subject(s) - markov chain , unemployment , economics , variance (accounting) , unemployment rate , distribution (mathematics) , econometrics , labour economics , mathematics , statistics , macroeconomics , mathematical analysis , accounting
Summary Assuming a Markov chain model for the labour market flow, we study it in its equilibrium state, We compare the observed and the theoretical unemployment rates. It is found that the observed unemployment rate approximates very closely the theoretical one. The mean and variance of the observed unemployment rate are computed. It is shown that its asymptotic distribution is normal.