Journal article

Employment Volatility and the Great Moderation: Evidence from the Australian States and Territories

D Shepherd, RJ Dixon

Australasian Journal of Regional Studies | Australia and New Zealand Regional Science Association International Inc. | Published : 2012


Macroeconomic policy discussion in Australia presumes that there was once and for all reduction in the volatility of aggregate output and employment in the late 80s or early-mid 90s and that all states and territories were party to this ‘Great Moderation’. In this paper we examine Australian data on national and state & territory employment, focusing in particular on whether there have been common national and state & territory changes in the volatility of employment growth. We find that there was no change in volatility for SA, WA and the ACT while there was a change in volatility, associated with ’the great moderation’ in the early-mid 1990s for NSW, VIC, QLD, TAS and the NT. The different..

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University of Melbourne Researchers