Testing for the unemployment hysteresis in Turkey

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Tezin Türü: Yüksek Lisans

Tezin Yürütüldüğü Kurum: Orta Doğu Teknik Üniversitesi, İktisadi ve İdari Bilimler Fakültesi, İktisat Bölümü, Türkiye

Tezin Onay Tarihi: 2013

Öğrenci: SILA AKÇAY

Danışman: DİLEM YILDIRIM KASAP

Özet:

This study tests for hysteresis of unemployment for Turkey over the period of January 2005 – May 2013. Allowing for the business cycle asymmetry of unemployment, with steep increases during recessions, followed by more gradual declines during expansions, we employ the threshold autoregressive (TAR) type unit root test of Caner and Hansen (2001). The empirical findings reveal that the nonlinear unit root test provides strong evidence in favour of the natural rate hypothesis while the standard linear unit root tests fails to do so.