Article ID Journal Published Year Pages File Type
5061385 Economics Letters 2010 5 Pages PDF
Abstract

This paper considers contributions of industry-sectoral-micro shocks vs aggregate macro shocks. A dynamic factor model is estimated with maximum likelihood method in the frequency domain, and decomposes US unemployment movements into industry sectoral and common components. Sectoral shocks account for around half unemployment movements.

Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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Micro vs macro explanations of post-war US unemployment movements
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