Output trends and Okun's law
AbstractThis paper estimates trend growth rates for a sample of industrial countries by applying Okun's law in first differences. Despite the simplicity of the approach and the restrictive assumptions, the method typically yields reasonable results when trend shifts in the Okun coefficients and changes in structural unemployment are allowed for. Particular caution is required in using the method for estimating output gaps.
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Bibliographic InfoPaper provided by Bank for International Settlements in its series BIS Working Papers with number 111.
Length: 39 pages
Date of creation: Apr 2002
Date of revision:
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- Kaufman, Roger T., 1988. "An international comparison of Okun's laws," Journal of Comparative Economics, Elsevier, vol. 12(2), pages 182-203, June.
- Prachowny, Martin F J, 1993. "Okun's Law: Theoretical Foundations and Revised Estimates," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 331-36, May.
- Tiff Macklemr & James Yetman, 2001. "Productivity growth and prices in Canada: what can we learn from the US experience?," BIS Papers chapters, in: Bank for International Settlements (ed.), Empirical studies of structural changes and inflation, volume 3, pages 29-48 Bank for International Settlements.
- Claude Giorno & Pete Richardson & Deborah Roseveare & Paul van den Noord, 1995. "Estimating Potential Output, Output Gaps and Structural Budget Balances," OECD Economics Department Working Papers 152, OECD Publishing.
- Christo Mavrov, 2007. "The Dependence between Unemployment and GDP in Bulgaria: Application of Direct and Reverse Regression," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 45-65.
- Verick, Sher & Islam, Iyanatul, 2010. "The great recession of 2008-2009 : causes, consequences and policy responses," ILO Working Papers 457693, International Labour Organization.
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