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Journals / Erciyes Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi / 2025 / Sayı: 72

Revisiting unemployment hysteresis in G7 countries: Evidence from the Fourier Nonlinear Quantile Unit Root approach

G7 ülkelerinde işsizlik histerisinin Fourier Doğrusal Olmayan Kantil Birim Kök yaklaşımı ile yeniden incelenmesi

Nedim Mercan0000-0002-7604-6828
Pages
141–147
Publication Date
2025-12-31
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

This provides new evidence on unemployment hysteresis in the framework of G7 economies.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:Unemployment is a socio-economic issue, and as such, it remains a dynamic concern for economic policy authorities across all periods.
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Key Findings & Data:This study seeks to reassess the unemployment hysteresis hypothesis in G7 countries from an asymmetric viewpoint and to present novel empirical findings.
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Conclusion & Impact:This provides new evidence on unemployment hysteresis in the framework of G7 economies.
🔬Design:Araştırma Makalesi
📍Scope:Comprehensive Sample
⚙️Variables:işsizlik histerisi · G7 ülkeleri · kantil birim kök testi

Abstract

Unemployment is a socio-economic issue, and as such, it remains a dynamic concern for economic policy authorities across all periods. The structural and cyclical aspect of unemployment determines the implementation direction of policies. This study seeks to reassess the unemployment hysteresis hypothesis in G7 countries from an asymmetric viewpoint and to present novel empirical findings. Both conventional and quantile unit root tests are utilized in the analysis. The primary focus of the study is the Fourier Nonlinear Quantile Unit Root (FNQUR) test, which simultaneously captures non-normal (heavy-tailed) distributions, nonlinearity, structural breaks, and asymmetric adjustments. Based on the findings of the Fourier ADF (FADF) test, two countries exhibit stationary processes, while the Fourier KSS (FKSS) test confirms stationarity for only one country. Similarly, the Fourier QKS (FQKS) test supports stationarity in two countries. However, the results of the FNQKS test, our main focus, differ significantly. Based on the results of the FNQKS test, Canada, Germany, Japan, the UK, and the US exhibit a unit root stationary process. These findings point to the validity of the Natural Rate Hypothesis (NRH). Accordingly, while conventional tests generally support the Unemployment Hysteresis Hypothesis (UH), the FNQKS test, contrarily points toward the NRH. An examination of the quantile-based results reveals that the impacts of positive and negative shocks diverge. In this context, the quantile results provide evidence for the presence of an asymmetric structure in Canada, Germany, Japan, the UK, and the US. This provides new evidence on unemployment hysteresis in the framework of G7 economies.

Özet

İşsizlik sorunu sosyo-ekonomik bir sorundur. Bu nedenle her dönem ekonomi yönetimi açısından çözüm üretilmek istenen dinamik bir konudur. İşsizliğin yapısal ve döngüsel yönü politikaların uygulama yönünü belirlemektedir. Bu çalışmanın amacı G7 ülkeleri için işsizlik histerisini asimetrik bir perspektiften yeniden inceleyerek yeni bulgularla açıklamaktır. Çalışmada hem geleneksel hem de kantil birim kök testleri kullanılmaktadır. Çalışmanın asıl odak noktası, normal olmayan (kuyruklu) dağılımları, doğrusal olmama durumunu, yapısal değişimleri ve asimetrik ayarlamayı aynı anda kapsayan Fourier doğrusal olmayan kantil birim kök testidir (FNQKS). Bu doğrultuda Fourier ADF (FADF) testi sonucunda iki ülkede birim kök durağan sürece sahipken, Fourier KSS (FKSS) testi sonucunda bir ülkede durağan süreç geçelidir. Fourier QKS (FQKS) testi sonucu iki ülkede birim kök durağan sürece sahipken, asıl odak noktamız olan FNQKS testi sonuçları oldukça farklılaşmaktadır. Buna göre FNQKS testi sonucuna göre Kanada, Almanya, Japonya, İngiltere ve Amerika’da birim kök durağan sürece sahiptir. Bu sonuçlar NRH’nin geçerliliğine işaret etmektedir. Dolayısıyla geleneksel testeler genel itibariyle UH’yi desteklerken, FNQKS testi tersi bir şekilde NRH’ye işaret etmektedir. Kantil bazlı sonuçlar incelendiğinde pozitif ve negatif şokların etkisinin ayrıştığı görülmektedir. Bu bağlamda kantil sonuçları Kanada, Almanya, Japonya, İngiltere ve Amerika’da asimetrik bir yapının varlığını kanıtlamaktadır. Bu bulgular G7 için işsizlik histerisi çerçevesinde yeni bulgular sunmaktadır.

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Cite This Article

Mercan, N. (2025). Revisiting unemployment hysteresis in G7 countries: Evidence from the Fourier Nonlinear Quantile Unit Root approach. Erciyes Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, Sayı: 72, 141–147. https://doi.org/10.18070/erciyesiibd.1762575

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