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Estimation of Okun Coefficient for Algeria

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  • KORI YAHIA, Abdellah

Abstract

The objective of this paper is to investigate the presence of Okun’s (1962) relationship for Algeria for the 1970- 2015 period. Two methodologies are employed to estimate the Okun coefficient: An Autoregressive Distributed Lag (ARDL) linear model and a Bayesian Normal Linear Regression model. The results indicate an Okun coefficient of about -0.2 which suggests some rigidity of the labour market in Algeria.

Suggested Citation

  • KORI YAHIA, Abdellah, 2018. "Estimation of Okun Coefficient for Algeria," MPRA Paper 83707, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:83707
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    References listed on IDEAS

    as
    1. Pesaran, M.H. & Shin, Y., 1995. "An Autoregressive Distributed Lag Modelling Approach to Cointegration Analysis," Cambridge Working Papers in Economics 9514, Faculty of Economics, University of Cambridge.
    2. Jarita Duasa, 2007. "Determinants of Malaysian Trade Balance: An ARDL Bound Testing Approach," Global Economic Review, Taylor & Francis Journals, vol. 36(1), pages 89-102.
    3. Davide Furceri, 2012. "Unemployment and Labor Market Issues in Algeria," IMF Working Papers 2012/099, International Monetary Fund.
    4. 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.
    5. Mohsen Bahmani-Oskooee & Raymond Chi Wing Ng, 2002. "Long-Run Demand for Money in Hong Kong: An Application of the ARDL Model," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 1(2), pages 147-155, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Dynamic Linear Models; Bayesian Techniques; Unemployment; Okun Coefficient; Simulation Techniques;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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