Quotation Sturn, Simon. 2014. Macroeconomic policy in recessions and unemployment hysteresis. Applied Economics Letters 21 (13): S. 914-917.




I adopt Balls (1999) cross-sectional approach to test for unemployment hysteresis to panel data. Long-run unemployment is explained with standard institutional controls, and proxies for monetary and fiscal policy reactions in recessions. The sample consists of 20 OECD countries for the period 1985 to 2008. The results indicate that fiscal consolidation in recessions has long-lasting effects on unemployment. No significant impact of monetary policy is found. However, tentative evidence suggests that the effects of fiscal spending are stronger when accommodated by expansionary monetary policy.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Applied Economics Letters
Citation Index SSCI
WU Journalrating 2009 A
Language English
Title Macroeconomic policy in recessions and unemployment hysteresis
Volume 21
Number 13
Year 2014
Page from 914
Page to 917
Reviewed? Y
URL http://www.tandfonline.com/doi/abs/10.1080/13504851.2014.899660
DOI http://dx.doi.org/10.1080/13504851.2014.899660
JEL E520, E620, E630, J080


Sturn, Simon (Details)
Institute for Ecological Economics IN (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5300 Economics (Details)
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