Fève, P.; Hénin, P. Y.; Jolivaldt, P. - In: Empirical Economics 28 (2003) 3, pp. 535-552
This paper proposes a new testing strategy for unemployment hysteresis as the joint restriction of a unit-root in the unemployment rate and no feedback effect of unemployment in the Phillips wage equation. The associated test statistics are derived when this joint restriction is imposed and when...