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The paper-bill spread and Blanchard's version of Okun's law

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  • Christian Weber

Abstract

Blanchard (1989) interprets Okun's Law as a relationship between VAR innovations in output and the unemployment rate. Adding the paper-bill spread to a bivariate VAR in output growth and the unemployment rate and even ordering it ahead of the unemployment rate when estimating the structural disturbances does not alter Blanchard's finding that Okun's coefficient for output and unemployment rate innovations rate is around -0.18.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 4 (1997)
Issue (Month): 7 ()
Pages: 437-440

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Handle: RePEc:taf:apeclt:v:4:y:1997:i:7:p:437-440

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Cited by:
  1. Afsin Sahin & Aysit Tansel & M. Hakan Berument, 2013. "Output-Employment Relationship across Sectors: A Long- versus Short-Run Perspective," Koç University-TUSIAD Economic Research Forum Working Papers 1311, Koc University-TUSIAD Economic Research Forum.

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