Summary A linearized model of the (macro) hysteresis loop is derived which shares a closer affinity to the original concept of hysteresis than conventional descriptive techniques by linear difference equations. The original loop is approximated by a rhombus shape path consisting of linear...

Summary In order to differentiate between unit root-persistence and structural break-hysteresis we estimate two types of cointegration models for West German employment. The standard model is compared with a model including structural breaks in the long-run relation between employment and its...