The Cause of Unemployment : Demand or Supply Shocks ?

@inproceedings{Hansen2007TheCO,
  title={The Cause of Unemployment : Demand or Supply Shocks ?},
  author={Henrik Hansen and Anders Warne},
  year={2007}
}
We study the Danish unemployment experience 1905-92 using a common trends model with cointegration constraints. To justify the identifying assumptions about the cointegration vectors and the common trends we present a simple macroeconomic model of the labor market. The model determines the long run behavior of labor productivity, employment, unemployment… CONTINUE READING