Bårdsen, Gunnar; Hurn, Stan; McHugh, Zoë - School of Economics and Management, University of Aarhus - 2010
The unemployment rate in Australia is modelled as an assymmetric and non-linear function of aggregate demand …, productivity, real wages and unemployment benefits. Negative changes in aggregate demand cause the unemployment rate to rise … rapidly, while real wage rigidity contributes its to slow adjustment back towards a lower level of unemployment. The model is …