Exchange rate uncertainty and employment: an algorithm describing ‘play’

Ansgar Belke and Matthias Göcke ()

Applied Stochastic Models in Business and Industry, 2001, vol. 17, issue 2, 181-204

Abstract: The paper deals with the impacts of exchange rate uncertainty on the relationship between macroeconomic labour market variables. Under uncertainty, areas of weak reactions—so‐called ‘play’ areas—have to be considered at the macrolevel. The width of the play area is a positive function of the degree of uncertainty. When changes go beyond the play‐area suddenly strong reactions (‘spurts’) occur. These non‐linear dynamics are captured in a simplified linearized way. An algorithm describing linear play hysteresis is developed and implemented into a regression framework. As an empirical application, the exchange rate impacts on German employment are analysed considering play effects. Copyright © 2001 John Wiley & Sons, Ltd.

Date: 2001
References: Add references at CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
https://doi.org/10.1002/asmb.436

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:apsmbi:v:17:y:2001:i:2:p:181-204

Access Statistics for this article

More articles in Applied Stochastic Models in Business and Industry from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().