Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/18047
Authors: 
Fritsche, Ulrich
Logeay, Camille
Year of Publication: 
2002
Series/Report no.: 
DIW-Diskussionspapiere 312
Abstract: 
The German unemployment rate shows strong signs if non-stationarity over the course of the previous decades. This is in line with an insider-outsider model under full hysteresis. We applied a "theory-guided view" to the data using the structural VAR model as developed by Balmaseda, Dolado and López-Salido (2000) allowing for full hysteresis on the labour market. Our identification of the model implies long-lasting output gaps for Germany – especially for the disinflation period of the 1980s.
Subjects: 
Structural unemployment
output gap
structural VAR
insider-outsider model
JEL: 
C32
J64
E32
E12
Document Type: 
Working Paper

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