Cassou, Steven P.; Vázquez Pérez, Jesús - Departamento de Fundamentos del Análisis Económico … - 2012
This paper considers a time varying parameter extension of the Ruge-Murcia (2003, 2004) model to explore whether some of the variation in parameter estimates seen in the literature could arise from this source. A time varying value for the unemployment volatility parameter can be motivated...