Okun's Law in Australia.

• Autores: Abbas Valadkhani
• Localización: Economic record, ISSN 0013-0249, Vol. 91, Nº. 295, 2015, págs. 509-522
• Idioma: inglés
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• Dialnet Métricas: 2 Citas
• Resumen

  • This paper examines the dynamic behaviour of the Okun coefficient using quarterly data (1980Q3-2014Q1). It is found that a rise in labour productivity and a fall in output can increase unemployment. A 1 per cent reduction in the unemployment rate requires only a 2.4 per cent increase in real output growth above the average growth rate, but during recessions this figure increases to 4.53 per cent. The probability of observing a higher coefficient was limited to recessionary periods. Given that recessions are now less frequent, Okun's law continues to be a useful rule of thumb in Australia.