Economics at your fingertips  

Firms' confidence and Okun's law in OECD countries

Helder de Mendonça () and Diego S.P. de Oliveira

Economic Modelling, 2019, vol. 78, issue C, 98-107

Abstract: Based on panel quarterly data regarding fifteen OECD countries for the period from 2001 to 2016, we provide empirical evidence for the relationship between firms' confidence and Okun's coefficient. In particular, we analyze if changes (updates) and persistent changes of firms' confidence have different implications for the Okun's coefficient. Based on Business Confidence Index and Managerial Sentiment Indicator we build indicators for measuring updates of the firms' confidence and performed several regressions. The findings denote that updates of medium-term as well as persistent updates of the firm's confidence are able to change the link between unemployment and output growth.

Keywords: Okun's coefficient; Firms' confidence; Unemployment; Output gap (search for similar items in EconPapers)
JEL-codes: E32 E24 M21 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

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:

DOI: 10.1016/j.econmod.2018.08.015

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Haili He ().

Page updated 2020-09-17
Handle: RePEc:eee:ecmode:v:78:y:2019:i:c:p:98-107