RT info:eu-repo/semantics/article
T1 The heterogeneity of Okun's law: A metaregression analysis
A1 Porras Arena, M. Sylvina
A1 Martín Román, Ángel Luis
K1 Economía
K1 Desempleo
K1 Okun's law
K1 Heterogeneity
K1 Metaregression
K1 Ley de Okun
K1 Heterogeneidad
K1 Metarregresión
K1 53 Ciencias Económicas
AB Okun's law, a significant parameter in empirical research and policy analysis, faces considerable heterogeneity. This stems from its dual interpretation in the literature, with one implying unemployment's effects on output and the other suggesting output's effects on unemployment. Consequently, comparing results from these approaches is not straightforward. Even within each approach, variability persists. Through meta-analysis and correction for publication bias, we identified the primary factor contributing to heterogeneity in both approaches: labor market characteristics (e.g., self-employment, labor laws, productive structure), leading to varying reactions of unemployment to cyclical output changes across different labor markets. The second most influential factor was methodological issues (data type, frequency, spatial coverage, sample period, etc.), highlighting how researchers' decisions impact results. Lastly, the underlying theoretical model also accounted for some variability. Okun proposed three models to estimate the relationship, which yielded comparable results for the US economy, but for other economies this was less evident.
PB Elsevier
SN 0264-9993
YR 2023
FD 2023
LK https://uvadoc.uva.es/handle/10324/61404
UL https://uvadoc.uva.es/handle/10324/61404
LA eng
NO Economic Modelling, 2023, vol. 128, 106490
NO Producción Científica
DS UVaDOC
RD 18-nov-2024