Alternative Methods of Estimating the Okun Coefficient. Applications for Romania

Petre Caraiani

Journal for Economic Forecasting, 2006, vol. 3, issue 4, 82-89

Abstract: The purpose of this study is to estimate the Okun coefficient for Romania for the 1991-2004 period. In order to derive it, I use a few alternative methods. As a dependent variable I use the gap of the unemployment rate while the independent variable is the gap of the production, where the aggregate production is approximated by the industrial production. I estimate the relationship through an ARDL model and through a bivariate structural VAR. The results indicate an Okun coefficient of about -0.17 which suggests some rigidity of the labor market.

Keywords: Business Cycles, Unemployment, Okun's Law (search for similar items in EconPapers)
JEL-codes: E23 E24 E32 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:rjr:romjef:v:3:y:2006:i:4:p:82-89

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