Economics, Econometrics and Finance
8 years ago

Unemployment rates in OECD countries show nonlinearity and regime-switching patterns.

Testing Nonlinearity in Unemployment in OECD Countries: Using Panel Logistic Smooth Transition Autoregressive (PLSTAR) model
Chenlu Wei, Changli He

Paper Summary

Related papers

Economics, Econometrics and Finance
4 years ago

Majority of countries' consumption-income ratios found to be nonstationary.

Economic Growth
Macroeconomic Analysis
Infrastructure Impact
2 views
Economics, Econometrics and Finance
8 years ago

Unemployment in Transition Countries Linked to Shifting Natural Rate Hypothesis

Macroeconomic Analysis
Labor Dynamics
Firm Dynamics
1 view
Economics, Econometrics and Finance
8 years ago

Unemployment rates in Eurozone countries show lasting impact over time.

Macroeconomic Analysis
Trade Impact
Firm Dynamics

The study looked at unemployment rates in OECD countries to see if they show nonlinearity. They used a special model called PSTAR(1) to test for nonlinear patterns in the data. By analyzing data from 18 countries between 1956 and 1998, they found that unemployment rates in OECD countries do display nonlinearity, switching between different patterns over time. This means that the traditional idea of unemployment being a linear process may not always hold true.