Investment and the long swings of unemployment

• Main Authors: HOON, Hian Teck, MARGARITA, Katsimi, ZOEGA, Gylfi
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2018
• Subjects: Long swings of unemployment; investment; current account; Great Recession; Finance; Labor Economics
• Online Access: https://ink.library.smu.edu.sg/soe_research/2216; https://ink.library.smu.edu.sg/context/soe_research/article/3215/viewcontent/BWPEF1810.pdf
• Institution: Singapore Management University

We estimate the relationship between investment and unemployment over the time period 1960-2015 in 20 OECD countries. While neoclassical growth theory typically assumes full employment – with no effect of investment on unemployment – we find that over our sample period covering more than five decade...