What Lies beneath? A Sub-National Look at Okun’s Law in the United States

Nathalie Gonzalez, Prakash Loungani and Saurabh Mishra
Additional contact information
Saurabh Mishra: University of Maryland

Open Economies Review, 2018, vol. 29, issue 4, No 7, 835-852

Abstract: Abstract We find that Okun’s Law holds quite well for most U.S. states but the Okun coefficient—the responsiveness of unemployment to output—varies substantially across states. We are able to explain a significant part of this cross-state heterogeneity on the basis of the state’s industrial structure. Our results have implications for the design of state and federal policies and may also be able to explain why Okun’s Law at the national level has remained quite stable over time despite an enormous shift in the structure of the U.S. economy from manufacturing to services.

Keywords: Okun’s Law; Unemployment; US states; Cyclicality (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11079-018-9491-2 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:openec:v:29:y:2018:i:4:d:10.1007_s11079-018-9491-2

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11079/PS2

DOI: 10.1007/s11079-018-9491-2

Access Statistics for this article

Open Economies Review is currently edited by G.S. Tavlas

More articles in Open Economies Review from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().