Sectoral Okun’s Law and Cross-Country Cyclical Differences
Eiji Goto () and
No 2019-002, Working Papers from The George Washington University, Department of Economics, Research Program on Forecasting
We estimate Okun's law at the sectoral level for the US, the UK, Japan, and Switzerland to test several hypotheses that may explain why the aggregate Okun's coefficients are different across countries. Specifically, we show that the sectoral composition is not a driver and find that the sectoral coefficients are proportional to the aggregate in all four countries. We also show that the standard deviation of unemployment is the main driver of the cross-country differences. This is consistent with labor market policies being crucial to explain the cross-country cyclical differences in the aggregate Okun's coefficient.
Keywords: Okun's law; Cross-country differences; Sectors (search for similar items in EconPapers)
JEL-codes: E24 E32 (search for similar items in EconPapers)
Pages: 46 pages
New Economics Papers: this item is included in nep-lab and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://www2.gwu.edu/~forcpgm/2019-002.pdf First version, 2019 (application/pdf)
Working Paper: Sectoral Okun's Law and Cross-Country Cyclical Differences (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:gwc:wpaper:2019-002
Access Statistics for this paper
More papers in Working Papers from The George Washington University, Department of Economics, Research Program on Forecasting Contact information at EDIRC.
Bibliographic data for series maintained by Tara M. Sinclair ().