This paper offers new insights into Beveridge curve analysis by modelling the vacancy-unemployment rate relationship within a Markov regime-switching environment in which the probability of curve-shifting is determined endogenously by shift factors. Shift factor candidates include structural...

We investigate the time-series properties of Australian and New Zealand real interest rates within a Markov-switching framework. This enables us to identify characteristics in real interest rate behavior hitherto unacknowledged. We find that rates switch between alternative stationary regimes...