### Abstract

Language | English |
---|---|

Title of host publication | The Science of Hysteresis (Volume 1) |

Pages | 667-699 |

Number of pages | 32 |

Publication status | Published - 2005 |

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### Keywords

- mathematical modelling
- hysteresis
- unemployment
- economics

### Cite this

*The Science of Hysteresis (Volume 1)*(pp. 667-699)

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*The Science of Hysteresis (Volume 1).*pp. 667-699.

**Hysteresis and unemployment : a preliminary investigation.** / Cross, Rod; Darby, Julia; Ireland, Jonathan; Piscitelli, Laura.

Research output: Chapter in Book/Report/Conference proceeding › Chapter

TY - CHAP

T1 - Hysteresis and unemployment

T2 - a preliminary investigation

AU - Cross, Rod

AU - Darby, Julia

AU - Ireland, Jonathan

AU - Piscitelli, Laura

PY - 2005

Y1 - 2005

N2 - This paper points out what hysteresis is using a simple model of market entry and exit. A procedure for calculating hysteresis indices for economic time series is outlined. Some preliminary results are presented to assess the explanatory power of hysteresis variables with regard to the equilibrium rate of unemployment in the UK. We find that both natural and "unnatural" variables enter a cointegrating vector for UK unemployment 1959-1996. The natural variable is the replacement ratio. The 'unnatural' variables are the hysteresis index of the exchange rate; and hysteresis indices for the real oil price and the real interest rate.

AB - This paper points out what hysteresis is using a simple model of market entry and exit. A procedure for calculating hysteresis indices for economic time series is outlined. Some preliminary results are presented to assess the explanatory power of hysteresis variables with regard to the equilibrium rate of unemployment in the UK. We find that both natural and "unnatural" variables enter a cointegrating vector for UK unemployment 1959-1996. The natural variable is the replacement ratio. The 'unnatural' variables are the hysteresis index of the exchange rate; and hysteresis indices for the real oil price and the real interest rate.

KW - mathematical modelling

KW - hysteresis

KW - unemployment

KW - economics

M3 - Chapter

SN - 0124808743

SP - 667

EP - 699

BT - The Science of Hysteresis (Volume 1)

ER -