Romero-Avila, Diego; Usabiaga, Carlos - In: Applied Economics Letters 14 (2007) 6, pp. 457-461
In this article, we investigate the existence of infrequent shocks and the degree of persistence of unemployment in the US and Spain over the period 1976-2004. We first apply the minimum Lagrange Multiplier unit root test with up to two endogenous changes in level. The evidence gives support to...