Spatio-temporal dynamics in Swiss regional unemployment
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Date
2011-02
Publication Type
Working Paper
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yes
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Abstract
It is generally accepted that regional labor markets are characterized by strong interdependencies. However, only few studies include spatial elements to their estimations. Using the model framework proposed by Cli and Ord (1973, 1981) and the estimation technique proposed by Kelejian and Prucha (1998), we estimate a spatial time series model for the Swiss cantonal unemployment rates on a quarterly level. Our model contains a spatial lag in the level and in the error term, as well as further exogenous explanatory variables. While both spatial lags turn out to be significant in our estimations, the dependency in the error term seems to be even stronger than the one in the level.
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published
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Volume
274
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KOF Swiss Economic Institute, ETH Zurich
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Subject
ECONOMETRICS AND ECONOMETRIC MODELS (OPERATIONS RESEARCH); UNEMPLOYMENT; SCHWEIZ (MITTELEUROPA). SCHWEIZERISCHE EIDGENOSSENSCHAFT; SWITZERLAND (CENTRAL EUROPE). SWISS CONFEDERATION; ÖKONOMETRIE UND ÖKONOMETRISCHE MODELLE (OPERATIONS RESEARCH); Spatial Econometrics; SPATIAL DISPARITY + REGIONAL DISPARITY (GEOGRAPHY); ARBEITSLOSIGKEIT; Regional Unemployment; RÄUMLICHE DISPARITÄT + REGIONALE DISPARITÄT (GEOGRAFIE); Switzerland
Organisational unit
02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute
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