Unemployment Hysteresis in the Czech Republic

Jakub Bechný

Prague Economic Papers, 2019, vol. 2019, issue 5, 532-546

Abstract: This paper analyses the unemployment hysteresis in the Czech Republic on data from 1999 to 2016. The hysteresis is modelled by allowing for the impact of cyclical unemployment on the non-accelerating inflation rate of unemployment. Models are estimated using the Bayesian approach and provide robust evidence in favour of the hysteresis. The estimates imply that in response to an increase in the cyclical unemployment of 1 percentage point, the non-accelerating inflation rate of unemployment increases by 0.18 percentage points.

Keywords: hysteresis; NAIRU; Phillips curve; state-space models; unemployment (search for similar items in EconPapers)
JEL-codes: C11 C32 E24 E32 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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DOI: 10.18267/j.pep.709

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