enables hysteresis to be taken into account. Hysteresis is likely to show up in unemployment but it can also affect the … capital stock due to the existence of long investment cycles. In the proposed model, hysteresis may affect all the factor … be computed that are hysteresis-free and less prone to volatility. A complementary measure of the output gap that takes …

unemployment, several European economies display highly persistent unemployment dynamics. The theory of hysteresis challenges this …Despite conventional macroeconomic theory is based on the idea that demand shocks can only have temporary effects on … strong empirical evidence of unemployment hysteresis in advanced economies since the 1990s. Relying on an identification …