Asymmetric unemployment rate dynamics in Australia

Gunnar Bårdsen, Stan Hurn and Zoë McHugh
Additional contact information
Zoë McHugh: Royal Bank of Scotland, Postal: Royal Bank of Scotland

CREATES Research Papers from Department of Economics and Business Economics, Aarhus University

Abstract: The unemployment rate in Australia is modelled as an assymmetric and non-linear function of aggregate demand, productivity, real wages and unemployment benefits. Negative changes in aggregate demand cause the unemployment rate to rise rapidly, while real wage rigidity contributes its to slow adjustment back towards a lower level of unemployment. The model is developed by exploiting recent developments in automated model-selection procedures.

Keywords: unemployment; non-linearity; dynamic modelling; aggregate demand; real wages (search for similar items in EconPapers)
JEL-codes: C12 C52 C87 E24 E32 (search for similar items in EconPapers)
Pages: 24
Date: 2010-01-06
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (4)

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https://repec.econ.au.dk/repec/creates/rp/10/rp10_02.pdf (application/pdf)

Related works:
Journal Article: Asymmetric Unemployment Rate Dynamics in Australia (2012)
Working Paper: Asymmetric unemployment rate dynamics in Australia (2011)
Working Paper: Asymmetric unemployment rate dynamics in Australia (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:aah:create:2010-02

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