Stability of activity-unemployment relationship in a codependent system

Bertrand Candelon and Alain Hecq

Applied Economics Letters, 2000, vol. 7, issue 10, 687-693

Abstract: A recursive codependence analysis is proposed for investigating the stability of the activity-unemployment relationship. Besides some noticeable statistical advantages, this new method provides a more accurate evaluation of conjunctural employment policies. It appears that for most countries, the delay necessary to absorb a shock is low, indicating that conjunctural stabilization mechanisms and/or employment policies serve their purpose.

Date: 2000
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DOI: 10.1080/135048500416030

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