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| Re: | Blue Tick Coonhound Breeder Wanted | | Ad: | How much is a First Class stamp? http://egotastic.in.net egotastic So far, we have demonstrated a correlation between heightened policy uncertainty and the outward shift in the Beveridge curve. The next step is to assess how much heightened policy uncertainty may have contributed to this shift. To answer this question, we use a statistical model to explore the relationships between changes in policy uncertainty and the other variables in our model, including the unemployment rate, the job vacancy rate, and our measure of the Beveridge curve shifter. We use our model to estimate the extent to which surprise changes in policy uncertainty produced movements in the Beveridge curve shifter. Once we know the extent to which policy uncertainty drove the Beveridge curve shifter, we can calculate the effects of uncertainty on the unemployment rate in our theoretical model, given the job vacancy rate.
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