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The natural unemployment rate in Australia since the seventies


Groenewold, N and Hagger, AJ, The natural unemployment rate in Australia since the seventies, The Economic Record, 74, (224) pp. 24-35. ISSN 0013-0249 (1998) [Refereed Article]

DOI: doi:10.1111/j.1475-4932.1998.tb01901.x


The natural rate of unemployment is calculated based on Lilien's (1982) notion that an increase in the sectoral dispersion of demand results in a rise in unemployment for a given level of aggregate demand. In contrast to earlier applications, the dispersion measure is based on sectoral employment growth rates purged of aggregate influences using a VAR model. We find that most of the rise in unemployment in Australia since the 1970s reflects the increase in the underlying natural rate. This finding is broadly consistent with Lilien's results for the US as well as earlier results for Australia and Canada.

Item Details

Item Type:Refereed Article
Research Division:Economics
Research Group:Econometrics
Research Field:Econometrics not elsewhere classified
Objective Division:Economic Framework
Objective Group:Macroeconomics
Objective Field:Macroeconomics not elsewhere classified
UTAS Author:Hagger, AJ (Dr Alfred Hagger)
ID Code:15316
Year Published:1998
Web of Science® Times Cited:19
Deposited By:Centre for Regional Economic Analysis
Deposited On:1998-08-01
Last Modified:2011-08-10

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