Modelling a Regime-Shifting New Zealand Beveridge Curve

Richard Dutu, Mark Holmes () and Brian Silverstone

Working Papers in Economics from University of Waikato

Abstract: This paper offers new insights into Beveridge curve analysis by modelling the vacancy-unemployment rate relationship within a Markov regime-switching environment in which the probability of curve-shifting is determined endogenously by shift factors. Shift factor candidates include structural factors (such as labour market participation and net migration) and cyclical variables (such as GDP growth and real interest rates). This approach enables us to estimate regime-specific parameters and the role played by shift factors in influencing the transition probabilities of switching between regimes. We illustrate our model with an application to New Zealand.

Keywords: Beveridge curve; regime-switching; New Zealand (search for similar items in EconPapers)
JEL-codes: C3 E2 J6 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2009-12-30
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://repec.its.waikato.ac.nz/wai/econwp/0913.pdf (application/pdf)

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:wai:econwp:09/13

Access Statistics for this paper

More papers in Working Papers in Economics from University of Waikato Private Bag 3105, Hamilton, New Zealand, 3240. Contact information at EDIRC.
Bibliographic data for series maintained by Geua Boe-Gibson ().