Estimates of Okun's law using a new output gap measure

Vladimir ArÄ abić and Eric Olson ()
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Vladimir ArÄ abić: University of Zagreb
Authors registered in the RePEc Author Service: Vladimir Arčabić

Economics Bulletin, 2019, vol. 39, issue 2, 929-936

Abstract: This paper analyzes new measures for output and unemployment gaps proposed by Hamilton (2017) and estimates Okun's law. We compare the Hamilton (2017) approach to the popular Hodrick and Prescott (1997) filter. Our results show that HP filter tends to underestimate the magnitude of Okun's law relationship across 20 OECD countries.

Keywords: HP Filter; Okun's Law (search for similar items in EconPapers)
JEL-codes: E3 (search for similar items in EconPapers)
Date: 2019-04-25
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Citations: View citations in EconPapers (1)

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