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Hysteresis in West German Unemployment Reconsidered
| Content Provider | Semantic Scholar |
|---|---|
| Author | Reutter, Michael |
| Copyright Year | 2000 |
| Abstract | The view that high unemployment in West Germany and other European countries is caused by a path dependence effect – or “hysteresis“ effect – is quite popular among economists. However, because of an identification problem, much of the empirical evidence for this hypothesis is not fully convincing. This paper suggests a testing procedure that overcomes this problem. It is argued that in a cointegration framework it is reasonable to define hysteresis as the absence of weak exogeneity of the explanatory variables. Building on a cointegration model of the employment rate in West Germany, I find only weak evidence for hysteresis. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | https://www.econstor.eu/bitstream/10419/75522/1/cesifo_wp240.pdf |
| Language | English |
| Access Restriction | Open |
| Subject Keyword | Autonomy Diabetes Insipidus Ectomesenchymal Chondromyxoid Tumor Exclusion Hysteresis Kind of quantity - Equilibrium Nominal type system Observable Organisation for Economic Co-Operation and Development Path dependence Policy Relevance Runlevel Shock Stochastic process Theory explanation |
| Content Type | Text |
| Resource Type | Article |
