Romero-Ávila, Diego; Usabiaga, Carlos - In: Empirical Economics 35 (2008) 1, pp. 77-99
This paper tests the hysteresis hypothesis for the unemployment rate of the Spanish regions over the period 1976–2004. For that purpose, we employ a large battery of recently developed panel tests which explicitly control for cross-sectional correlation in addition to the panel stationarity...