rate, unemployment and inflation in West Germany from the early 1960s up to 2004 using a multivariate co-integration …New-Keynesian macroeconomic models typically assume that any long-run trade-off between inflation and unemployment is … data a strong negative correlation between the trend components of inflation and unemployment. We show that this finding …

Persistently high unemployment rates in Germany have led to a long-running controversy on the causes of the … unemployment problem. This paper aims to re­view the contribution of Keynesian and monetarist theories to this controversy and … explores empirically their implications for the explanation of high un­em­ploy­ment in Germany using a structural vector …

This paper analyses the Nairu in the Euro Area and the influence that hysteresis had on its development. Using the … is applied here using explicit exogenous variables. In order to test for hysteresis, the dependence of the Nairu on … actual unemployment and long-term unemployment is estimated and found to be significant for the Euro Area and Germany …

in German unemployment is fully explained by hysteresis. The Great Recession was well absorbed because both hysteresis …We construct a new Markov-switching unobserved components framework for the analysis of hysteresis effects. Our model … effects and structural unemployment were substantially reduced after institutional reforms. In contrast, U.S. unemployment did …

modern labour market literature NAIRU is defined as the rate of unemployment at which inflation stabilizes in the absence of … any wage-price surprises. Conventional thinking about the equilibrium unemployment rate assumes that in the long run NAIRU … arise even in simple log-linear wage-price models. Furthermore we provide a survey on a number of "hysteresis …

We use a time-varying panel unobserved components model to estimate unemployment gaps disaggregated by age and gender … recession, with effects amplified for younger workers. The aggregate Phillips curve flattens over time and hysteresis is … countercyclical for all groups. We find heterogeneity in both the Phillips curve and hysteresis coefficients, with wages responding …

A new test for hysteresis based on a nonlinear unobserved components model is proposed. Observed unemployment rates are … cyclical unemployment to have a different impact on the natural rate depending on the regime of the economy. The impact of … lagged cyclical shocks on the current natural component is the measure of hysteresis. To derive anappropriate p-value for a …

We set up and estimate a structural unobserved components open economy model for the rate of unemployment and the real … factors. Thus, the results indicate that the dramatic changes in the Swedish unemployment rate during the 1990s mainly was a … inflation is found to be quite sensitive to the unemployment gap. An increase in cyclical unemployment by 1 percentage point …