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U.S. Regional Business Cycles and the Natural Rate of Unemployment

Resource Type
Dataset : survey data
  • Wall, Howard J. (Federal Reserve Bank of St. Louis)
  • Zoega, Gylfi (University of Iceland. University of London. Central Bank of Iceland)
Other Title
  • Version 1 (Subtitle)
Publication Date
Free Keywords
business cycles; unemployment; unemployment rate
  • Abstract

    Estimates of the natural rate of unemployment are important in many macroeconomic models used by economists and policy advisors. This paper shows how such estimates might benefit from closer attention to regional developments. Regional business cycles do not move in lock-step, and greater dispersion among regions can affect estimates of the natural rate of unemployment. There is microeconomic evidence that employers are more reluctant to cut wages than they are to raise them. Accordingly, the relationship between wage inflation and vacancies is convex: An increase in vacancies raises wage inflation at an increasing rate. The authors' empirical results are consistent with this and indicate that if all else had remained constant, the reduction in the dispersion of regional unemployment rates between 1982 and 2000 would have meant a two-percentage-point drop in the natural rate of aggregate unemployment.
  • Table of Contents


    • DS1: Dataset
Geographic Coverage
  • United States
Collection Mode
  • Files submitted are data file 0401hwd.xls and the program file 0401hwp.txt. These data are part of ICPSR's Publication-Related Archive and are distributed exactly as they arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.

This study is freely available to the general public via web download.
Alternative Identifiers
  • 1296 (Type: ICPSR Study Number)
  • Wall, Howard J., Zoega, Gylfi. U.S. Regional Business Cycles and the Natural Rate of Unemployment. Federal Reserve Bank of St. Louis Review.86, (1), 23-32.2004.

Update Metadata: 2015-08-05 | Issue Number: 6 | Registration Date: 2015-06-15

Wall, Howard J.; Zoega, Gylfi (2004): U.S. Regional Business Cycles and the Natural Rate of Unemployment. Version 1. Version: v1. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset.