Canarella, Giorgio; Miller, Stephen M.; Pollard, Stephen K. - Department of Economics, University of Nevada-Las Vegas - 2014
This paper explores the mean-reverting behavior of the unemployment rate using monthly geographically disaggregated data for the period 1991:01 through 2012:02. We apply both standard unit-root tests and tests that allow for one and two structural breaks in the mean. We find evidence that favors...