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Parameter Instability in Models of Local Unemployment Responses

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  • R Dunn

    (Department of Geography, University of Bristol, Bristol BS8 1SS, England)

Abstract

Following papers by Brechling and Thirlwall, a number of studies have investigated the response of local or regional unemployment series to changes in the national series by means of regression approaches. In this paper a number of statistical tests for regression instability over time are discussed, and then applied to the Brechling model of unemployment responses in thirtynine local areas in the Severnside region. The results suggest marked instability in the regression over time, and moving window regression is introduced to track changes in the values of parameters. The spatial pattern of changing unemployment responses across the region is presented and discussed.

Suggested Citation

  • R Dunn, 1982. "Parameter Instability in Models of Local Unemployment Responses," Environment and Planning A, , vol. 14(1), pages 75-94, January.
    • Handle: RePEc:sae:envira:v:14:y:1982:i:1:p:75-94
    DOI: 10.1068/a140075
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    References listed on IDEAS

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    1. Harvey, A. C. & Phillips, G. D. A., 1974. "A comparison of the power of some tests for heteroskedasticity in the general linear model," Journal of Econometrics, Elsevier, vol. 2(4), pages 307-316, December.
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    Cited by:

    1. Maria Francesca Cracolici & Miranda Cuffaro & Peter Nijkamp, 2007. "Geographical Distribution of Unemployment: An Analysis of Provincial Differences in Italy," Growth and Change, Wiley Blackwell, vol. 38(4), pages 649-670, December.
    2. J.Paul Elhorst, 2005. "Models for Dynamic Panels in Space and Time - an Application to Regional Unemployment in the EU," ERSA conference papers ersa05p81, European Regional Science Association.
    3. repec:dgr:rugsom:00c06 is not listed on IDEAS
    4. Elhorst, J. Paul, 2000. "The Mystery Of Regional Unemployment Differentialsa Survey Of Theoretical And Empirical Explanations," ERSA conference papers ersa00p60, European Regional Science Association.
    5. Henk Folmer & Peter Nijkamp, 1985. "Methodological Aspects Of Impact Analysis Of Regional Economic Policy," Papers in Regional Science, Wiley Blackwell, vol. 57(1), pages 165-180, January.

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