IDEAS home Printed from https://ideas.repec.org/a/sae/reorpe/v51y2019i1p158-163.html
   My bibliography  Save this article

A Note on “Puzzles, Paradoxes, and Regularities: Cyclical and Structural Productivity in the United States (1950–2005)â€

Author

Listed:
  • Gregory Alan Krohn

Abstract

Jeon and Vernengo apply Okun’s Law and Verdoorn’s Law to examine the cyclical and structural effects of output growth on productivity. Their estimation method, however, is flawed, and their results are not robust. New estimates indicate that less of the variation in labor productivity growth is explained, that the Verdoorn and Okun coefficients are unstable over time, and that the results after 1973 are inconsistent with Kaldor’s interpretation of Verdoorn’s Law. JEL Classification: E32; O47; O51

Suggested Citation

  • Gregory Alan Krohn, 2019. "A Note on “Puzzles, Paradoxes, and Regularities: Cyclical and Structural Productivity in the United States (1950–2005)â€," Review of Radical Political Economics, Union for Radical Political Economics, vol. 51(1), pages 158-163, March.
    • Handle: RePEc:sae:reorpe:v:51:y:2019:i:1:p:158-163
    DOI: 10.1177/0486613417720774
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0486613417720774
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0486613417720774?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Deepankar Basu & Duncan K. Foley, 2013. "Dynamics of output and employment in the US economy," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 37(5), pages 1077-1106.
    2. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Valadkhani, Abbas & Smyth, Russell, 2015. "Switching and asymmetric behaviour of the Okun coefficient in the US: Evidence for the 1948–2015 period," Economic Modelling, Elsevier, vol. 50(C), pages 281-290.
    2. Abdessalem GOUIDER & Ridha NOUIRA & Faouzi SBOUI, 2018. "La relation croissance-chômage en Tunisie : validation de la spécification non linéaire de la loi d’Okun," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 47, pages 27-41.
    3. Michael Christl & Monika Köppl-Turyna & Dénes Kucsera, 2017. "Okun's Law in Austria," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 2, pages 97-110, June.
    4. Costas KARFAKIS & Constantinos KATRAKILIDIS & Eftychia TSANANA, 2014. "Does output predict unemployment? A look at Okun's law in Greece," International Labour Review, International Labour Organization, vol. 153(3), pages 421-433, September.
    5. Stephen T. Onifade & Ahmet Ay & Simplice A. Asongu & Festus V. Bekun, 2019. "Revisiting the Trade and Unemployment Nexus: Empirical Evidence from the Nigerian Economy," Working Papers 19/079, European Xtramile Centre of African Studies (EXCAS).
    6. Revoredo-Giha, Cesar & Leat, Philip M.K. & Renwick, Alan W., 2012. "The relationship between output and unemployment in Scotland: A regional analysis," Working Papers 131465, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    7. Deepankar Basu1, Duncan K. Foley, 2011. "WP 2011-4 Dynamics of Output and Employment in the U.S. Economy," SCEPA working paper series. 2011-4, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    8. Thomas Obst, 2022. "Dynamic version of Okun’s law in the EU15 countries—The role of delays in the unemployment‐output nexus," Scottish Journal of Political Economy, Scottish Economic Society, vol. 69(2), pages 225-241, May.
    9. Menzie Chinn & Laurent Ferrara & Valérie Mignon, 2013. "Post-recession US employment through the lens of a non-linear Okun’s law," Working Papers hal-04141207, HAL.
    10. Sánchez-Fung, José R., 2015. "Producto, desempleo y la Ley de Okun en la República Dominicana [Output, unemployment and Okun’s law in the Dominican Republic]," MPRA Paper 63656, University Library of Munich, Germany.
    11. Baki Güney Işıkara, 2021. "The Weight of Essentials in Economic Activity," Review of Radical Political Economics, Union for Radical Political Economics, vol. 53(1), pages 95-115, March.
    12. Ryan W Herzog, 2013. "An Analysis of Okun's Law, the Natural Rate, and Voting Preferences for the 50 States," Economics Bulletin, AccessEcon, vol. 33(4), pages 2504-2517.
    13. Albers, Scott & Albers, Andrew, 2015. "On the mathematic prediction of economic and social crises: toward a harmonic interpretation of the Kondratiev Wave, revised and corrected, with a new appendix, February 12, 2015," MPRA Paper 62118, University Library of Munich, Germany.
    14. Celia Melguizo, 2017. "An analysis of Okun’s law for the Spanish provinces," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 37(1), pages 59-90, February.
    15. Brey, Björn & Hertweck, Matthias S., 2020. "The Extension Of Short-Time Work Schemes During The Great Recession: A Story Of Success?," Macroeconomic Dynamics, Cambridge University Press, vol. 24(2), pages 360-402, March.
    16. Besso, Christophe Raoul, 2010. "Employment intensity of growth and its macroeconomics determinants," MPRA Paper 35615, University Library of Munich, Germany, revised 28 Dec 0002.
    17. Giorgio Canarella & Stephen M. Miller, 2017. "Did Okun’s law die after the Great Recession?," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 52(4), pages 216-226, October.
    18. Rada, Codrina & Tavani, Daniele & von Arnim, Rudiger & Zamparelli, Luca, 2023. "Classical and Keynesian models of inequality and stagnation," Journal of Economic Behavior & Organization, Elsevier, vol. 211(C), pages 442-461.
    19. Malki, Mostafa & Thompson, Henry, 2014. "Morocco and the US Free Trade Agreement: A specific factors model with unemployment and energy imports," Economic Modelling, Elsevier, vol. 40(C), pages 269-274.
    20. Brian Micallef, 2017. "Empirical Estimates of Okun¡¯s Law in Malta," Applied Economics and Finance, Redfame publishing, vol. 4(1), pages 138-148, January.

    More about this item

    Keywords

    productivity; business cycles; economic growth; empirical analysis in political economy;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:reorpe:v:51:y:2019:i:1:p:158-163. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.urpe.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.