Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/55210 
Full metadata record
DC FieldValueLanguage
dc.contributor.authorKaranassou, Marikaen
dc.contributor.authorSala, Hectoren
dc.date.accessioned2012-02-09T14:07:45Z-
dc.date.available2012-02-09T14:07:45Z-
dc.date.issued2008-
dc.identifier.urihttp://hdl.handle.net/10419/55210-
dc.description.abstractThe evolution of Spanish unemployment has been quite idiosyncratic. The full-employment levels of the early seventies were followed by unemployment rates that were the highest within the OECD countries in the aftermath of the oil price shocks. While unemployment was extremely persistent in most of the eighties and nineties, it experienced its sharpest decline in recent years. We investigate the determinants of this unemployment trajectory using the analytical framework of the chain reaction theory (CRT). We show that unemployment may not gravitate towards its natural rate due to frictional growth, a phenomenon that arises from the interplay of lagged adjustment processes and growing exogenous variables in a dynamic system with spillovers. The empirical analysis distinguishes four periods: (i) 1978-1985, (ii) 1986-1990, (iii) 1991-1994, (iv) 1995-2005, and finds that capital accumulation is a crucial driving force of unemployment. Thus, our theoretical and empirical results question the key role of the natural rate in policy making.en
dc.language.isoengen
dc.publisher|aQueen Mary University of London, Department of Economics |cLondonen
dc.relation.ispartofseries|aWorking Paper |x633en
dc.subject.jelE22en
dc.subject.jelE24en
dc.subject.jelJ21en
dc.subject.ddc330en
dc.subject.keywordlabour market dynamicsen
dc.subject.keywordfrictional growthen
dc.subject.keywordchain reaction theoryen
dc.subject.keywordcapital accumulationen
dc.subject.keywordimpulse response functionen
dc.subject.stwArbeitslosigkeiten
dc.subject.stwVolatilitäten
dc.subject.stwInvestitionen
dc.subject.stwSpanienen
dc.titleThe rise and fall of Spanish unemployment: A chain reaction theory perspective-
dc.typeWorking Paperen
dc.identifier.ppn583815146en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

Files in This Item:
File
Size
426.44 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.