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Distributed Lags in Local Responses to Fluctuations in Unemployment

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  • I R Gordon

    (Urban and Regional Studies Unit, University of Kent, Canterbury, Kent CT2 7NF, England)

Abstract

In this paper the sources of distributed lags, involving both positive and negative lead and lag terms, in the relationship between local and national unemployment series are analysed. First, the elements of labour supply and demand from which local unemployment changes result are considered, with emphasis on the role of induced labour migration. Second, the consequences of the arithmetical relationship between local and national unemployment series are examined. It is shown that the national-local unemployment relationship should be nonlinear and the lag distribution should be dependent on the level of unemployment. More explicit recognition of causal relationships is necessary if substantive conclusions are to be drawn from statistical analyses of lag structures.

Suggested Citation

  • I R Gordon, 1985. "Distributed Lags in Local Responses to Fluctuations in Unemployment," Environment and Planning A, , vol. 17(6), pages 845-856, June.
    • Handle: RePEc:sae:envira:v:17:y:1985:i:6:p:845-856
    DOI: 10.1068/a170845
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    References listed on IDEAS

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    2. Greenwood, Michael J., 1981. "Migration and Economic Growth in the United States," Elsevier Monographs, Elsevier, edition 1, number 9780123006509 edited by Mills, Edwin S..
    3. Martin, R L, 1982. "Job Loss and the Regional Incidence of Redundancies in the Current Recession," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 6(4), pages 375-395, December.
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    1. repec:dgr:rugsom:00c06 is not listed on IDEAS
    2. Elhorst, J. Paul, 2000. "The Mystery Of Regional Unemployment Differentialsa Survey Of Theoretical And Empirical Explanations," ERSA conference papers ersa00p60, European Regional Science Association.

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