ISSN:
1435-8921
Keywords:
Key words: cointegration
;
common trends
;
structural shocks
;
unemployment
;
JEL classifications: E24
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract. In this paper we analyze the West German labour market by means of a cointegrated structural VAR model. We find sensible stable long-run relationships that are interpreted as a labour demand, a wage setting and a goods market equilibrium. In order to study the dynamic behaviour of the model we identify two common trends that push unemployment. We find that goods market shocks have only transitory impacts on unemployment. In the long run, it is almost equally determined by technology and labour supply factors. However, transitory shocks have major importance in the shorter run since adjustment processes are rather sluggish.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/s001810000028
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