UNEMPLOYMENT HYSTERESIS IN PIIGS COUNTRIES: A NEW TEST WITH BOTH SHARP AND SMOOTH BREAKS
Jing-Ping Li (),
Omid Ranjbar () and
Tsangyao Chang ()
Additional contact information
Jing-Ping Li: Department of Finance and Banking, Shanxi University of Finance & Economics, Shanxi, China
The Singapore Economic Review (SER), 2017, vol. 62, issue 05, 1165-1177
In this empirical study, we apply the Panel stationary test with both sharp and smooth breaks to re-examine the hysteresis hypothesis of unemployment for five high-debt countries, Portugal, Ireland, Italy, Greece and Spain (PIIGS) from 1960 to 2011. We find that our proposed model has greater power than a linear method if the true data-generating process of unemployment is a stationary, non-linear process of unknown form with structural changes. Hysteresis in unemployment is confirmed for all PIIGS countries when traditional unit root tests are employed; however, hysteresis in unemployment is confirmed only for Greece when our proposed Panel stationary test with both sharp and smooth breaks is utilized.
Keywords: Hysteresis in unemployment; PIIGS countries; Stationary test; sharp and smooth breaks; Fourier function (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wsi:serxxx:v:62:y:2017:i:05:n:s0217590815500782
Ordering information: This journal article can be ordered from
Access Statistics for this article
The Singapore Economic Review (SER) is currently edited by Euston Quah
More articles in The Singapore Economic Review (SER) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().