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Department of Economics, WU (Wirtschaftsuniversität Wien) Growth and Employment in Europe: Sustainability and Competitiveness, Department of Economics, WU (Wirtschaftsuniversität Wien)

No 13:
A Cross-Country Study on Okun's Law

Leopold Soegner () and Alfred Stiassny ()

Abstract: Okun's Law postulates an inverse relationship between movements of the unemployment rate and the real gross domestic product (GDP). In this article we investigate Okun's law for 15 OECD countries and check for its the structural stability. By using data on employment and the labor force we infer whether structural instability is caused either from the demand side or the supply side.

Keywords: Okun's Law; Time Variing Parameter Models; (follow links to similar papers)

JEL-Codes: C51; D32; (follow links to similar papers)

September 2000

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