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Okun’s law and anelastic relaxation in economics

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  • Raymond Hawkins

Abstract

We unify the gap, difference and dynamic versions of Okun’s law using the theory of anelasticity. This theory provides a straightforward and parsimonious approach to macroeconomic model construction that we illustrate by treating the time-dependence of Okun’s law generated by labor migration. We also show how this approach provides a natural way of expressing the phenomena of macroeconomic friction due to the kinetic adjustment of microeconomic variables. Copyright Springer-Verlag Berlin Heidelberg 2015

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  • Raymond Hawkins, 2015. "Okun’s law and anelastic relaxation in economics," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 10(1), pages 151-161, April.
    • Handle: RePEc:spr:jeicoo:v:10:y:2015:i:1:p:151-161
    DOI: 10.1007/s11403-014-0128-2
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    12. Aoki, Masanao & Hawkins, Raymond, 2009. "Macroeconomic Relaxation: Adjustment Processes of Hierarchical Economic Structures," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 3, pages 1-21.
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    Cited by:

    1. Hawkins, Raymond J. & Nguyen, Chau N., 2018. "Macroeconomic dynamics and the IS puzzle," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 12, pages 1-13.
    2. Hawkins, Raymond J. & Nguyen, Chau N., 2017. "Macroeconomic dynamics and the IS puzzle," Economics Discussion Papers 2017-20, Kiel Institute for the World Economy (IfW Kiel).

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