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Okun's law revisited: should we worry about low unemployment?

Author

Listed:
  • David E. Altig
  • Terry J. Fitzgerald
  • Peter Rupert

Abstract

A review of the connection between labor resource utilization and the growth/unemployment correlation summarized by Okun's law, showing that the instability of that relationship, particularly over short time horizons, has important implications for monetary policy.

Suggested Citation

  • David E. Altig & Terry J. Fitzgerald & Peter Rupert, 1997. "Okun's law revisited: should we worry about low unemployment?," Economic Commentary, Federal Reserve Bank of Cleveland, issue May.
  • Handle: RePEc:fip:fedcec:y:1997:i:may15
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    Citations

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    Cited by:

    1. Kwami Adanu, 2005. "A cross-province comparison of Okun's coefficient for Canada," Applied Economics, Taylor & Francis Journals, vol. 37(5), pages 561-570.
    2. Lee, Jim, 2000. "The Robustness of Okun's Law: Evidence from OECD Countries," Journal of Macroeconomics, Elsevier, vol. 22(2), pages 331-356, April.
    3. Guisinger, Amy Y. & Hernandez-Murillo, Ruben & Owyang, Michael T. & Sinclair, Tara M., 2018. "A state-level analysis of Okun's law," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 239-248.
    4. Kitov, Ivan, 2011. "Okun’s law revisited. Is there structural unemployment in developed countries?," MPRA Paper 32135, University Library of Munich, Germany.
    5. Eduardo Loría & Manuel G. Ramos., 2007. "La ley de Okun: una relectura para México, 1970-2004," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 22(1), pages 19-55.
    6. Aki Kangasharju & Christophe Tavera & Peter Nijkamp, 2012. "Regional Growth and Unemployment: The Validity of Okun's Law for the Finnish Regions," Spatial Economic Analysis, Taylor & Francis Journals, vol. 7(3), pages 381-395, September.
    7. Silvia Palombi & Roger Perman & Christophe Tavéra, 2015. "Regional growth and unemployment in the medium run: asymmetric cointegrated Okun's Law for UK regions," Applied Economics, Taylor & Francis Journals, vol. 47(57), pages 6228-6238, December.
    8. TURTUREAN, Ciprian Ionel, 2007. "Legea lui Okun pentru România în perioada 1992-2004
      [Okun's Law for Romania during 1992-2004]
      ," MPRA Paper 10638, University Library of Munich, Germany.
    9. João Sousa Andrade, 2007. "Uma Aplicação da Lei de Okun em Portugal," GEMF Working Papers 2007-04, GEMF, Faculty of Economics, University of Coimbra.
    10. Edward S. Knotek & II, 2007. "How useful is Okun's law?," Economic Review, Federal Reserve Bank of Kansas City, issue Q IV, pages 73-103.
    11. João Sousa Andrade, 2009. "The PIGS, does the Group Exist? An empirical macroeconomic analysis based on the Okun Law," GEMF Working Papers 2009-11, GEMF, Faculty of Economics, University of Coimbra.
    12. Guglielmo Maria Caporale & Marinko Škare, 2011. "Employment Growth, Inflation and Output Growth: Was Phillips Right? Evidence from a Dynamic Panel," CESifo Working Paper Series 3502, CESifo Group Munich.
    13. Ian H.K. Leow, 2004. "A Simple Dynamic Model of Big-push," Econometric Society 2004 Australasian Meetings 218, Econometric Society.

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