Uma Aplicação da Lei de Okun em Portugal

No 2007-04, GEMF Working Papers from GEMF, Faculty of Economics, University of Coimbra

Abstract: We know from experience that weak economic growth increases the unemployment rate. In 1962 Okun proposed to measure potential output in terms of unemployment gap. From this relation a direct link between increase in unemployment and output growth was deduced, known as the Okun Law. This Law is one of the pillars of empirical macroeconomics. One of the problems of this Law is the iteration between the variables involved and the non-stationarity of these variables. As a consequence we must be careful with the stability and the possible asymmetry of Okun’s Law. We apply these ideas to the Portuguese economy in order to obtain an estimated Okun Law. We can conclude by the temporal stability of a dynamic formulation of the Law, although we also conclude by the presence of an asymmetric behaviour of the Law.

Keywords: Okun Law; Cycles; Participation rate; Stability; Asymmetry (search for similar items in EconPapers)
JEL-codes: C32 C51 E24 J21 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2007
New Economics Papers: this item is included in nep-mac
References: Add references at CitEc
Citations:

Downloads: (external link)
https://estudogeral.uc.pt/bitstream/10316/11744/1/ ... %20em%20Portugal.pdf (application/pdf)

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:gmf:wpaper:2007-04

Access Statistics for this paper

More papers in GEMF Working Papers from GEMF, Faculty of Economics, University of Coimbra Contact information at EDIRC.
Bibliographic data for series maintained by Sofia Antunes ().