Bring Quantile Unit Root Test back in Testing Hysteresis in Unemployment for the United States

Yushi Jiang () and Tsangyao Chang
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Yushi Jiang: School of Economic & Management, Southwest Jiaotong University, Chendo, China

Journal for Economic Forecasting, 2016, issue 1, 5-13

Abstract: We apply quantile unit root test to revisit the hysteresis in unemployment for the United States using data over 1928-2014. Conventional unit root tests indicate that hysteresis in unemployment does not hold in the United States over 1928-2014. Quantile Kolmogorov-Smirnov test also reject the hysteresis in unemployment hypothesis However, empirical results from quantile unit root test indicate that hysteresis in unemployment hold in both 0.3 and 0.4 quantiles. These empirical results are different from previous findings and have important policy implications for government to conduct economic stabilization policy in the United States.

Keywords: quantile unit root test; hysteresis in unemployment; the United States; stabilization policy (search for similar items in EconPapers)
JEL-codes: C2 J6 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (1)

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