analytically. Under certain conditions the model exhibits hysteresis, i.e. temporary shocks on the price level or the unemployment …

. Adjustment costs of changing benefits can introduce hysteresis in benefit setting and unemployment. Both (very) bad and good … feature of the model is that the mechanism yielding hysteresis (which requires a concave utility function) ceases to operate …

so that our identification is not affected by the Faust andLeeper (1997) critique. We find widespread hysteresis: demand …-teractions with structural shocks and other institutions as crucial determinantsof hysteresis. …

for the debate between the structural or hysteresis hypotheses. We develop a procedure that permits us to test for the … the 0/1 paradigm about the order of integration, usually implemented for testing the hypothesis of hysteresis in … occupational unemployment. In almost all occupations, we find support for both the structuralist and the hysteresis hypotheses, but …

equilibrium paths. Hysteresis is viewed as the result of a selection between these different equilibrium paths. We use this model … of the 1970?s may have played a central role in generating hysteresis. …

transition rates. We focus on hysteresis effects of the durations and incidence of previous spells out of work. We estimate … rates to work, and sometimes also from work. The quantitative magnitude of persistency and hysteresis effects on inequality …

This paper provides a model of social hysteresis whereby long, deep recessions demotivate workers and thereby lead them …