Ferrara, Laurent; Mignon, Valérie; Chinn, Menzie - EconomiX, Université Paris Ouest-Nanterre la Défense … - 2013
This paper aims at investigating the relationship between employment and GDP in the United States. We disentangle trend and cyclical employment components by estimating a non-linear Okun’s law based on a smooth transition error-correction model that simultaneously accounts for long-term...