Summary We show that under the alternative hypothesis the Hausman chi-square test statistic can be negative not only in small samples but even asymptotically. Therefore in large samples such a result is only compatible with the alternative and should be interpreted accordingly. Applying a known...

The macroeconomic impact of the French work-sharing reform of 2000 (a reduction of standard working hours in combination with wage subsidies) is analysed. Using a vector error correction model (VECM) for several labour market variables, as well as inflation and output, out-of-sample forecasts...

French employment increased significantly after a labor-market reform in 2000. This paper analyzes whether that development was driven by work-sharing (the mandated reduction of the workweek length) as claimed by the government. We use a structural VAR model in error correction form (SVECM) to...

Given that for France, Germany, Italy and the Netherlands the unemployment rates are best classified as <italic>I</italic>(1), we apply permanent-transitory decompositions based on co-integrated Vector Autoregressions (VAR) with relevant variables (labour productivity, wages, tax wedges, foreign relative prices)...

There is a significant variation in demographic development among European Union (EU) member states. Using the UN’s Population Prospects, we examine how different retirement ages in selected EU countries would lead to comparable relations between the working-age population and pensioners in...

We show that under the alternative hypothesis the Hausman chi-square test statistic can be negative not only in small samples but even asymptotically. Therefore in large samples such a result is only compatible with the alternative and should be interpreted accordingly. Applying a known insight...