Parker, Randall; Rothman, Philip - In: Studies in Nonlinear Dynamics & Econometrics 2 (2007) 4, pp. 159-177
Building upon Beaudry and Koop's (1993) analysis, we consider a "current depth of the recession" (CDR) variable in modeling the time-series behavior of the postwar quarterly U.S. unemployment rate. The CDR approach is consistent with the state-dependent behavior in the unemployment rate...
