Show Summary Details
You do not have access to this content

A useful framework for linking labor and goods markets: Okun's law and its stability revisited

Mustafa Ismihan

Keywords: Okun's law; theoretical framework; Keynesian view; business cycles; output–unemployment relationship

This paper introduces a useful framework for linking labor and goods markets. This framework enables us to provide a reasonable theoretical background to Okun's law and hence facilitates the decomposition of Okun's coefficient into several quantifiable and interpretable components that incorporate the main insights of Arthur Okun's original analysis and the traditional Keynesian view. The empirical decomposition exercise indicates that Okun's law has an inherent tendency to vary substantially over time and this provides a potential explanation to the empirical studies that have shed doubt on the stability of Okun's law.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.