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 over the last two decades that persisted beyond the Great Recession. Our structural VAR approach encompasses various … for most of the observed unemployment decline. Wage moderation was most pronounced right after the implementation of Hartz ….e. within the monetary union. In contrast, the muted response of unemployment to the Great Recession was not significantly …

containing GDP, unemployment (or price), real wage and the real exchange rate, four structural shocks are identified; Velocity …, unemployment, price, real wage and the real exchange rate. The results are robust to alternative specifications of the model and …