Alon, Alicia Pérez; Sanzo, Silvestro Di - Instituto Valenciano de Investigaciones Económicas (IVIE) - 2005
The aim of this paper is to find a possible hysteresis effect on unemployment rate series from Italy, France and the United States. We propose a definition of hysteresis taken from Physics which allows for nonlinearities. To test for the presence of hysteresis we use a nonlinear unobserved...