IB  Vol.6 No.3 , September 2014
Bai-Perron Estimates of OECD Natural Rates of Unemployment 1955-2011
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.
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.

[1]   Bai, J. and Perron, P. (1998) Estimating and Testing Linear Models with Multiple Structural Breaks. Econometrica, 66, 47-78.

[2]   Papell, D., Murray, C. and Ghiblawi, H. (2000) The Structure of Unemployment. Review of Economics and Statistics 82, 309-315.

[3]   Laurance, B. and Mankiw, N.G. (2002) The NAIRU in Theory and Practice. Journal of Economic Perspectives, 16, 115-136.

[4]   Laubach, T. (2001) Measuring the Nairu: Evidence from Seven Economies. The Review of Economics and Statistics, 83, 218-231.

[5]   Guichard, S. and Rusticelli, E. (2011) Reassessing the NAIRUs after the Crisis. OECD Economics Department Working Papers No. 918.

[6]   Blanchard, O. (2006) European Unemployment: The Evolution of Facts and Ideas. Economic Policy, 21, 5-59.

[7]   Ljungqvist, L. and Sargent, T. (2008) Two Questions about European Unemployment. Econometrica, 76, 1-29.

[8]   Boeri, T. and Garibaldi, P. (2009) Beyond Eurosclerosis. Economic Policy, 406-461.

[9]   Layard, R., Nickell, S. and Jackman, R. (1994) The Unemployment Crisis. Oxford University Press, Oxford.

[10]   Bundesagentur für Arbeit 2011 (2002) Amtliche Nachrichten der Bundesagentur für Arbeit.

[11]   Burda, M. and Hunt, J. (2011) What Explains the German Labor Market Miracle in the Great Recession? Brookings Paper on Economic Activity, 273-319.

[12]   Elliott, G., Rothenberg, T. and Stock, J. (1996) Efficient Tests for an Autoregressive Unit Root. Econometrica, 64, 813-836.

[13]   Perron, P. and Vogelsang, T. (1992) Nonstationarity and Level Shifts with an Application to Purchasing Power Parity. Journal of Business and Economic Statistics, 10, 301-320.

[14]   Clemente, J., Montanes, A. and Reyes, M. (1998) Testing for a Unit Root in Variables with a Double Change in the Mean. Economic Letters, 59, 175-182.

[15]   Kerekes, M. (2011) Analyzing Patterns of Economic Growth: A Production Frontier Approach. Unpublished Manuscript.