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A Note on “Puzzles, Paradoxes, and Regularities: Cyclical and Structural Productivity in the United States (1950–2005)â€

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  • Gregory Alan Krohn

Abstract

Jeon and Vernengo apply Okun’s Law and Verdoorn’s Law to examine the cyclical and structural effects of output growth on productivity. Their estimation method, however, is flawed, and their results are not robust. New estimates indicate that less of the variation in labor productivity growth is explained, that the Verdoorn and Okun coefficients are unstable over time, and that the results after 1973 are inconsistent with Kaldor’s interpretation of Verdoorn’s Law. JEL Classification: E32; O47; O51

Suggested Citation

  • Gregory Alan Krohn, 2019. "A Note on “Puzzles, Paradoxes, and Regularities: Cyclical and Structural Productivity in the United States (1950–2005)â€," Review of Radical Political Economics, Union for Radical Political Economics, vol. 51(1), pages 158-163, March.
    • Handle: RePEc:sae:reorpe:v:51:y:2019:i:1:p:158-163
    DOI: 10.1177/0486613417720774
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    References listed on IDEAS

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    1. Deepankar Basu & Duncan K. Foley, 2013. "Dynamics of output and employment in the US economy," Cambridge Journal of Economics, Oxford University Press, vol. 37(5), pages 1077-1106.
    2. Edward S. Knotek, 2007. "How useful is Okun's law?," Economic Review, Federal Reserve Bank of Kansas City, vol. 92(Q IV), pages 73-103.
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    More about this item

    Keywords

    productivity; business cycles; economic growth; empirical analysis in political economy;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

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