This article investigates the effects and transmission channels of shocks between two asymmetric neighboring countries. In particular, we investigate Austria and Germany which are highly integrated due to their common language and common membership of the European Monetary Union. Generalized...

We apply range unit-root tests to OECD unemployment rates and compare the results to conventional tests. By simulations, we nd that unemployment is represented adequately by a new nonlinear transformation of a serially-correlated I(1) process.