Okun's Law, Asymmetries and Jobless Recoveries in the United States: A Markov-Switching Approach
AbstractThis paper offers a new perspective on Markov regime-switching approaches to asymmetries in Okun’s law by modeling the existing approaches as special cases. Prevailing models assume either asymmetry between unemployment and output across regimes or asymmetry within a single regime. Our specification combines both approaches. Our empirical results give an insight into the apparent ‘jobless recovery’ experiences that began in the United States in 1991 and 2001.
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Bibliographic InfoPaper provided by University of Waikato, Department of Economics in its series Working Papers in Economics with number 05/06.
Length: 11 pages
Date of creation: 08 Dec 2005
Date of revision:
Note: Now published: 'Economics Letters' 92(2) August 2006, pp.293-99.
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Okun’s law; Markov-switching; asymmetry; jobless recoveries; United States;
Other versions of this item:
- Holmes, Mark J. & Silverstone, Brian, 2006. "Okun's law, asymmetries and jobless recoveries in the United States: A Markov-switching approach," Economics Letters, Elsevier, vol. 92(2), pages 293-299, August.
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models &bull Diffusion Processes
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
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- Afsin Sahin & Aysit Tansel & M.Hakan Berument, 2013. "Output-Employment Relationship across Sectors:A Long- versus Short-Run Perspective," ERC Working Papers 1305, ERC - Economic Research Center, Middle East Technical University, revised May 2013.
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