Demiralp, Berna; Gantt, Bonnie B.; Selover, David D. - In: Journal of Macroeconomics 33 (2011) 4, pp. 724-737
We examine the dynamic phenomenon of unemployment as a constantly changing inventory of unemployed individuals. We … unemployment. Multicointegration, introduced by Granger and Lee (1989), offers a natural way to model the level of unemployment as … an inventory. We find that there is multicointegration between inflows into and outflows from unemployment and the level …