Okun’S Law In The French Regions: A Cross-Regional Comparison
AbstractThis article tackles one central issue in the regional science literature: the persistence of regional disparities in unemployment within national economies. Our approach is original as Okun’s coefficients are estimated for each of the 22 administrative French regions over the period 1990–2008, taking into account cross-regional disparities in a panel data specification. Estimates show that the coefficients exhibit regional differences. Indeed, Okun’s law is confirmed in fourteen regions, although it does not hold in the other eight regions. Finally, region-specific factors that explain the results that are not significant are identified, and policies to reduce unemployment in French regions are examined.
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Bibliographic InfoPaper provided by Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS in its series Economics Working Paper Archive (University of Rennes 1 & University of Caen) with number 201222.
Date of creation: Apr 2012
Date of revision:
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Postal: CREM (UMR CNRS 6211) - Faculty of Economics, 7 place Hoche, 35065 Rennes Cedex - France
Other versions of this item:
- Binet Marie-estelle & Francois Facchini, 2013. "Okun's law in the french regions: a cross-regional comparison," Economics Bulletin, AccessEcon, vol. 33(1), pages 420-433.
- Marie-Estelle Binet & François Facchini, 2013. "Okun's Law in the French Regions: A Cross-Regional Comparison," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) halshs-00812549, HAL.
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-22 (All new papers)
- NEP-GEO-2012-05-22 (Economic Geography)
- NEP-URE-2012-05-22 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- Baltagi, Badi H. & Wu, Ping X., 1999. "Unequally Spaced Panel Data Regressions With Ar(1) Disturbances," Econometric Theory, Cambridge University Press, vol. 15(06), pages 814-823, December.
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- Rui M. Pereira, 2014. "Okun's Law, Asymmetries and Regional Spillovers: Evidence from Virginia Metropolitan Statistical Areas and the District of Columbia," Working Papers 140, Department of Economics, College of William and Mary.
- Marie-Estelle Binet & François Facchini, 2013. "Determinants of Entrepreneurship in French Regions: The Role of Spatial Heterogeneity," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201312, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
- alamro, Hassan & Al-dalaien, Qusay, 2014. "Modeling the relationship between GDP and unemployment for Okun’s law specific to Jordan," MPRA Paper 55302, University Library of Munich, Germany.
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