Okun's Law, Asymmetries and Jobless Recoveries in the United States: A Markov-Switching Approach

This paper offers a new perspective on Markov regime-switching approaches to asymmetries in Okun’s law by modeling the existing approaches as special cases. Prevailing models assume either asymmetry between unemployment and output across regimes or asymmetry within a single regime. Our specification combines both approaches. Our empirical results give an insight into the apparent ‘jobless recovery’ experiences that began in the United States in 1991 and 2001.

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Year of publication:	2005-12-08
Authors:	Holmes, Mark J. ; Silverstone, Brian
Institutions:	Department of Economics, Waikato Management School
Subject:	Okun’s law \| Markov-switching \| asymmetry \| jobless recoveries \| United States

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Extent:	application/pdf
Series:	Working Papers in Economics.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Now published: 'Economics Letters' 92(2) August 2006, pp.293-99. 11 pages
Classification:	C22 - Time-Series Models ; E32 - Business Fluctuations; Cycles
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005634976