On the Evidence of Non-Linear Structure in Canadian Unemployment.

Abstract

In this paper, we focus on and examine the empirical evidence of non- linearity in aggregate Canadian unemployment. Contrary to the conclusion reached in Murray et al. (1993), and using a corrected for bias simple non-parametric test (SNT), we reject the null hypothesis of a linear structure for Canadian unemployment.Canada, Unemployment, Brock Dechert and Scheinkman (BDS) test, Simple Non-Paramteric Test (SNT), U-Statistics, Correlation Integral, Non-Linear Specification.