HYSTERESIS EFFECT ON UNEMPLOYMENT: EVIDENCE FROM THE VISEGRAD COUNTRIES

• Authors: Furuoka Fumitaka
• Languages of publication: EN

Abstracts

EN

Hysteresis effect on unemployment is a much discussed topic in macroeconomics. However, empirical findings regarding the existence of hysteresis effect are contradictory. The present study investigates hysteresis in the unemployment rates of the Visegrad Group countries, namely: the Czech Republic, Hungary, Poland and Slovakia. For this purpose it employs the following three econometric methods: (1) the linear unit root tests; (2) the Seemingly Unrelated Regressions Augmented Dickey-Fuller (SURADF) test; and (3) the Fourier Dickey-Fuller (FADF) test. The findings revealed that among the Visegrad Group countries hysteresis effect was found to exist in the unemployment rates in Hungary and Poland.

Keywords

EN

UNEMPLOYMENT; VISEGRAD COUNTRIES

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2014
• Volume: 62
• Issue: 2
• Pages: 185 – 198

Contributors

author

Furuoka Fumitaka

• Asia-Europe Institute, University of Malaya, 50603 Kuala Lumpur, Malaysia