Bianchi, Marco; Zoega, Gylfi - In: Journal of Applied Econometrics 13 (1998) 3, pp. 283-304
One of the stylized facts of unemployment is that shifts in its mean rate between decades and half-decades account for most of its variance. In this paper, we use a statistical analysis based on Markov switching regression models to identify the dates of infrequent changes in the mean of the...