“…There is a growing body of research which points to the fact that the unemployment rate in both the U.S. (Hansen, 1997, Verbrugge, 1997, Parker and Rothman, 1998, Rothman, 1998, Koop and Potter, 1999, Altissimo and Violante, 2001 and Europe (Acemoglu and Scott, 1994, Peel and Speight, 1998, Brännäs and Ohlsson, 1999, Akram and Nymoen, 2006, Skalin and Teräsvirta, 2002 exhibits asymmetric behaviour in the sense that it increases more quickly than it decreases. Various explanations of this non-linear behaviour have been offered in the literature.…”