TITLE:
Bai-Perron Estimates of OECD Natural Rates of Unemployment 1955-2011
AUTHORS:
Michael Shannon, Bakhtiar Moazzami
KEYWORDS:
Natural Rate, NAIRU, Unemployment, Structural Break
JOURNAL NAME:
iBusiness,
Vol.6 No.3,
September
29,
2014
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.