Hysteresis hypothesis vs. structuralist view in Canada: a new test for the sharp break and smooth shift

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Tarih

2021

Dergi Başlığı

Dergi ISSN

Cilt Başlığı

Yayıncı

Academy of Economic Studies

Erişim Hakkı

info:eu-repo/semantics/openAccess

Özet

We have investigated the hysteresis hypothesis using a newly proposed unit root test which considers both sharp breaks and smooth shifts in its testing process for Canada during the period 1960-2019 in this study. The so-called unit root test allows researchers control for sharp breaks such as crises, smooth shifts such as nonlinearities, simultaneously. In proposing this highly complex trend structure, we are also proposing a new way for the macroeconomic theorist to model the unemployment rate following the structuralist view. It takes into account the structural breaks and possible nonlinearities as form of smooth shifts which leads to a new form of structuralist view. The empirical results display that the unemployment rates in Canada follow a non-hysteresis path under the presence of sharp and smooth structural breaks.

Açıklama

Anahtar Kelimeler

Unemployment, Hysteresis, Unit Root Test, Sharp and Smooth Break

Kaynak

Economic Computation and Economic Cybernetics Studies and Research

WoS Q Değeri

Q4

Scopus Q Değeri

Q3

Cilt

55

Sayı

2

Künye