This paper investigates unemployment persistence in the 27 EU member states by applying fractional integration methods … in others and not changing in a minority of cases. On the whole, our results support the hysteresis hypothesis for the …

growth drivers. Estimating a system of labor market equations for a panel of EU countries, we derive the dynamic unemployment …This paper presents a reappraisal of unemployment movements in the European Union. Our analysis is based on the chain … reaction theory of unemployment, which focuses on (a) the interaction among labor market adjustment processes, (b) the …

presence of incidental trends in panel unit root test setting is ubiquitous. …

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 … is argued that in a cointegration framework it is reasonable to define hysteresis as the absence of weak exogeneity of …

. For these purposes, panel unit root tests are employed to improve power against univariate counterparts. Since cross … section correlation is a distinct feature of the underlying panel data, results are based on various second generation panel …

integration ; misalignment ; second-generation panel unit-root and cointegration tests …

This paper considers estimation and inference in panel vector autoregressions (PVARs) with fixed effects when the time … dimension of the panel is finite, and the cross-sectional dimension is large. A Maximum Likelihood (ML) estimator based on a …

by applying "gsecond generation" panel cointegration techniques. A unique identification strategy for the selection of … sub-panels improves the robustness of panel cointegration tests and reveals that Laender finances are hardly sustainable. …