Asymmetry in the Unemployment–Output Relationship Over the Business Cycle: Evidence from Transition Economies

Emrah Çevik, Selahattin Dibooglu and Salih Barişik
Additional contact information
Salih Barişik: Department of Economics, Gaziosmanpaşa University, Tokat 60150, Turkey.

Comparative Economic Studies, 2013, vol. 55, issue 4, 557-581

Abstract: This study examines the presence of asymmetry in Okun's law for nine transition economies by means of a Markov regime-switching model. We examine the relationship between unemployment and real GDP to ascertain whether such changes are substantially different in downswing versus upswing regimes. The nonlinear model outperforms the linear model in all transition economies in the sample except for Slovenia. There is evidence that the Okun coefficients vary across regimes and countries. In most countries, cyclical unemployment is more sensitive to cyclical output in downswing regimzes than upswing regimes. We also find recoveries entail poor job growth in most transition economies.

Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
http://www.palgrave-journals.com/ces/journal/v55/n4/pdf/ces20137a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/ces/journal/v55/n4/full/ces20137a.html Link to full text HTML (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:pal:compes:v:55:y:2013:i:4:p:557-581

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41294/PS2

Access Statistics for this article

Comparative Economic Studies is currently edited by Nauro Campos

More articles in Comparative Economic Studies from Palgrave Macmillan, Association for Comparative Economic Studies Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().