Underlying trends in employment-output equation: the case of Jordan
Underlying trends in employment-output equation: the case of Jordan
Author(s): Arqam Al-Rabbaie, Ahmad Alwaked, Yaseen AltarawnehSubject(s): Economy
Published by: Prague Development Center
Keywords: Employment; stochastic trend; structural time series modelling
Summary/Abstract: The underlying employment trend (UET) is investigated in Jordanian economy over the period 1989- 2004 using structural time series model (STSM). This approach allows to modelling the trend in its stochastic form introduced by Harvey (1989). The results show that a stochastic trend is preferred to deterministic trend. In addition, the inclusion or exclusion of the conventional deterministic trend leads to overestimated output elasticity. Furthermore, the UET is found to be non-linear, down downward sloping.
Journal: Perspectives of Innovations, Economics and Business, PIEB
- Issue Year: 3/2009
- Issue No: 3
- Page Range: 35-37
- Page Count: 3
- Language: English
