Bai-Perron Estimates of OECD Natural Rates of Unemployment 1955-2011

Bakhtiar  Moazzami; Michael  Shannon

doi:10.4236/ib.2014.63015

Michael Shannon^*, Bakhtiar Moazzami

Abstract: Bai and Perron’s method for detecting multiple, unknown structural breaks was used to estimate natural rates of unemployment for 19 OECD countries from 1955-2011. Natural rates were lowest in the early period, then, rose in the mid-1970s and early-1980s in most countries. Several countries saw declines in the late-1990s or early-2000s.

Keywords: Natural Rate, NAIRU, Unemployment, Structural Break

Cite this paper: Shannon, M. and Moazzami, B. (2014) Bai-Perron Estimates of OECD Natural Rates of Unemployment 1955-2011. iBusiness, 6, 143-149. doi: 10.4236/ib.2014.63015.

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