Journal article

Exchange rate uncertainty and employment: an algorithm describing 'play'


Authors listBelke, A; Göcke, M

Publication year2001

Pages181-204

JournalApplied Stochastic Models in Business and Industry

Volume number17

Issue number2

ISSN1524-1904

eISSN1526-4025

DOI Linkhttps://doi.org/10.1002/asmb.436

PublisherWiley


Abstract

The paper deals with the impacts of exchange rate uncertainty on the relationship between macroeconomic labour market variables. Under uncertainty, areas of weak reactions-so-called 'play' areas-have to be considered at the macrolevel. The width of the play area is a positive function of the degree of uncertainty. When changes go beyond the play-area suddenly strong reactions ('spurts') occur. These non-linear dynamics are captured in a simplified linearized way. An algorithm describing linear play hysteresis is developed and implemented into a regression framework. As an empirical application, the exchange rate impacts on German employment are analysed considering play effects. Copyright (C) 2001 John Wiley & Sons, Ltd.




Citation Styles

Harvard Citation styleBelke, A. and Göcke, M. (2001) Exchange rate uncertainty and employment: an algorithm describing 'play', Applied Stochastic Models in Business and Industry, 17(2), pp. 181-204. https://doi.org/10.1002/asmb.436

APA Citation styleBelke, A., & Göcke, M. (2001). Exchange rate uncertainty and employment: an algorithm describing 'play'. Applied Stochastic Models in Business and Industry. 17(2), 181-204. https://doi.org/10.1002/asmb.436


Last updated on 2025-21-05 at 17:19