Output and Unemployment Dynamics during the Great Recession: A Panel Unobserved Components Analysis

August 1, 2010

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Format: Chicago

Francis Vitek. Output and Unemployment Dynamics during the Great Recession: A Panel Unobserved Components Analysis, (USA: International Monetary Fund, 2010) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper analyzes the sources of output and unemployment dynamics in the world economy during the Great Recession. This analysis is based on a panel unobserved components model of the world economy, disaggregated into its fifteen largest national economies. We find that excess supply pressure was primarily transmitted from the output market to the labor market by economy specific combinations of negative domestic or foreign output demand shocks, mitigated to varying degrees by countercyclical labor market policies or institutions.

Subject: Labor demand, Labor market institutions, Labor markets, Short term interest rates, Unemployment rate

Keywords: WP

Publication Details

Pages:

20
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2010/185
Stock No:

WPIEA2010185
ISBN:

9781455202195
ISSN:

1018-5941

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