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Journals / Erciyes Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi / 2012 / Cilt: 0 - Sayı: 40

Is unemployment hysterisis hypothesis valid for OECD Countries? The analysis of unit root tests with Structural breaks

İşsizlik histerisi hipotezi OECD ülkeleri için geçerli mi? Yapısal kırılmalı birim kök analizi

Burcu ÖZCAN
Pages
95–117
Publication Date
2022-10-18
DOI
—
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AI Summary & Key Takeaways

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

The results signal that most unemployment series in OECD countries are in hysteresis effect

📌 3 Key Takeaways

🎯
Objective & Hypothesis:There are three approaches regarding the movement of unemployment series over time,namely hysteresis hypothesis, natural rate hypothesis, and structuralist approach.
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Key Findings & Data:The natural rate hypothesis indicates unemployment series being stationary, whereas structuralist view implies stationarity in unemployment series with breaks.
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Conclusion & Impact:The results signal that most unemployment series in OECD countries are in hysteresis effect
🔬Design:Research Article
📍Scope:2003 Verileri
⚙️Variables:Domain Parameters

Abstract

There are three approaches regarding the movement of unemployment series over time,namely hysteresis hypothesis, natural rate hypothesis, and structuralist approach. The hysteresishypothesis points out that unemployment series follow unit root process. The natural rate hypothesis indicates unemployment series being stationary, whereas structuralist view implies stationarity in unemployment series with breaks. In this study, we apply unit root tests that allow for breaksdeveloped by Lee and Strazicich (2003) and Im et al. (2005, 2010). We examine the validity ofhysteresis hypothesis in both univariate and panel dimensions. The results signal that most unemployment series in OECD countries are in hysteresis effect

Özet

İşsizlik serisinin zaman boyunca izlemiş olduğu yol ile ilgili histeri hipotezi, doğal oran hipotezi ve yapısalcı yaklaşım şeklinde üç görüş söz konusudur. Histeri hipotezi, işsizlik serisininbirim kök süreci izlediğini vurgulamaktadır. Doğal oran hipotezi ise işsizlik serisinin durağanolduğuna işaret ederken, yapısalcı yaklaşım kırılmalar ile birlikte işsizlik serisinin durağan oldu- ğunu belirtmektedir. Bu çalışmada Lee ve Strazicich (2003) ile Im vd. (2005, 2010) tarafındangeliştirilen yapısal kırılmalı birim kök testlerini kullanmaktayız. Histeri hipotezinin geçerliliğinihem ülke, hem de panel boyutunda incelemekteyiz. Sonuçlar, çoğu OECD ülkesi için işsizlikserilerinin histeri etkisi altında olduğuna işaret etmektedir

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Cite This Article

ÖZCAN, B. (2022). Is unemployment hysterisis hypothesis valid for OECD Countries? The analysis of unit root tests with Structural breaks. Erciyes Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, Cilt: 0 - Sayı: 40, 95–117. https://ajindex.com/articles/503554

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