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A Cross-Country Study on Okun's Law

Author

Listed:
  • Leopold Soegner

    (Department of Economics, Vienna University of Economics & B.A.)

  • Alfred Stiassny

    (Department of Economics, Vienna University of Economics & B.A.)

Abstract

Okun's Law postulates an inverse relationship between movements of the unemployment rate and the real gross domestic product (GDP). In this article we investigate Okun's law for 15 OECD countries and check for its the structural stability. By using data on employment and the labor force we infer whether structural instability is caused either from the demand side or the supply side.

Suggested Citation

  • Leopold Soegner & Alfred Stiassny, 2000. "A Cross-Country Study on Okun's Law," Working Papers geewp13, Vienna University of Economics and Business Research Group: Growth and Employment in Europe: Sustainability and Competitiveness.
    • Handle: RePEc:wiw:wiwgee:geewp13
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    File URL: http://www.wu-wien.ac.at/inst/vw1/gee/papers/gee!wp13.pdf
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    References listed on IDEAS

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    Cited by:

    1. KARGI, Bilal, 2014. "Okun’s Law and Long Term Co-Integration Analysis for OECD Countries (1987-2012)," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 119, pages 77-85.
    2. Kargı, Bilal, 2014. "The Data of Labor Market in Turkey and Time Series Analysis on Economic Growth (2000:01-2013:03)," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 3(3), pages 98-102.

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    More about this item

    Keywords

    Okun's Law; Time Variing Parameter Models;

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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