Fig. 11

Impulse responses following a negative economic activity shock (in p.p.). a Inflow rate (s) to unemployment. b Outflow rate (f) from unemployment. c Job vacancy rate. d Real GDP growth rate. Notes: The solid black line represents the response of the variable of interest to the exogenous negative shock on output growth; the two round-dotted black lines are the 68 % confidence bands. The exogenous decline in output growth is modeled to be 1 percentage point. Standard errors have been calculated by bootstrapping the residuals (1000 replications were performed)