Research Commons
      • Browse 
        • Communities & Collections
        • Titles
        • Authors
        • By Issue Date
        • Subjects
        • Types
        • Series
      • Help 
        • About
        • Collection Policy
        • OA Mandate Guidelines
        • Guidelines FAQ
        • Contact Us
      • My Account 
        • Sign In
        • Register
      View Item 
      •   Research Commons
      • University of Waikato Research
      • Management
      • Management Papers
      • View Item
      •   Research Commons
      • University of Waikato Research
      • Management
      • Management Papers
      • View Item
      JavaScript is disabled for your browser. Some features of this site may not work without it.

      Asymmetric adjustment of unemployment and output in New Zealand: Rediscovering Okun’s law

      Harris, Richard; Silverstone, Brian
      Thumbnail
      Files
      Economics_wp_0002.pdf
      118.7Kb
      Citation
      Export citation
      Harris, R. & Silverstone, B. (2000). Asymmetric adjustment of unemployment and output in New Zealand: Rediscovering Okun’s law. (Department of Economics Working Paper Series, Number 2/00). Hamilton, New Zealand: University of Waikato.
      Permanent Research Commons link: https://hdl.handle.net/10289/1663
      Abstract
      Okun's law - the relationship between unemployment and output - is one of the best known empirical regularities in macroeconomics. It is an important relationship because the way in which unemployment reacts to changes in output has implications for labour market and monetary policies and for forecasting. Most specifications of Okun's law assume a symmetric relationship: expansions and contractions in output have the same absolute effect on unemployment. In this paper, we test this assumption against the alternative view that the relationship is asymmetric. We use New Zealand data from 1978 to 1999 and contemporary econometric techniques including asymmetric modelling. Our main finding is that changes in unemployment and output in New Zealand are related in both the long run and the short run but only if an asymmetric approach is taken.
      Date
      2000-05
      Type
      Working Paper
      Series
      Department of Economics Working Paper Series
      Report No.
      2/00
      Publisher
      Department of Economics, University of Waikato
      Collections
      • Management Papers [1125]
      Show full item record  

      Usage

      Downloads, last 12 months
      58
       
       

      Usage Statistics

      For this itemFor all of Research Commons

      The University of Waikato - Te Whare Wānanga o WaikatoFeedback and RequestsCopyright and Legal Statement