Okun’s law, asymmetries and jobless recoveries in the United States: A Markov-switching approach
Citation
Export citationHolmes, M. & Silverstone, B. (2005). Okun’s law, asymmetries and jobless recoveries in the United States: A Markov-switching approach. (Department of Economics Working Paper Series, Number 6/05). Hamilton, New Zealand: University of Waikato.
Permanent Research Commons link: https://hdl.handle.net/10289/1644
Abstract
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.
Date
2005-12Type
Report No.
6/05
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