A Cross-Province Comparison of Okun's Coefficient for Canada
In this paper, we estimate Okun's coefficients for ten Canadian provinces using real GDP and unemployment rate data across the provinces. We obtain an average estimated Okun's coefficient of -1.58 under the Hodrick-Prescott detrending method and -1.32 under the quadratic detrending method. There is relative stability of the coefficients across the two detrending methods. Generally, the cost of unemployment in terms of the loss in real GDP is higher in the bigger and more industrialized provinces ranging from -2.14 for Ontario to less than -1 for the Maritime provinces.
|Date of creation:||11 Sep 2002|
|Contact details of provider:|| Postal: PO Box 1700, STN CSC, Victoria, BC, Canada, V8W 2Y2|
Web page: http://web.uvic.ca/econ
More information through EDIRC
References listed on IDEAS
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.:
- Christian Weber & James West, 1996. "Functional form in regression models of Okun's law," Applied Economics Letters, Taylor & Francis Journals, vol. 3(9), pages 607-609.
When requesting a correction, please mention this item's handle: RePEc:vic:vicewp:0204. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David Giles)
If references are entirely missing, you can add them using this form.