Resource title

Structural unemployment and the output gap in Germany : evidence from an SVAR analysis within a hysteresis framework

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image for OpenScout resource :: Structural unemployment and the output gap in Germany : evidence from an SVAR analysis within a hysteresis framework

Resource description

The German unemployment rate shows strong signs if non-stationarity over the course of the previous decades. This is in line with an insider-outsider model under full hysteresis. We applied a "theory-guided view" to the data using the structural VAR model as developed by Balmaseda, Dolado and López-Salido (2000) allowing for full hysteresis on the labour market. Our identification of the model implies long-lasting output gaps for Germany – especially for the disinflation period of the 1980s.

Resource author

Ulrich Fritsche, Camille Logeay

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/18047

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Adapt according to the presented license agreement and reference the original author.