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- W2186014952 abstract "The current financial and economic crisis reignited the interest in the output-unemploymentrelationship. The unemployment rate in Romanian economy reacted strongly to the fall in economicactivity, by more than doubling in less than a year raising, and thus raising questions on the validityof a symmetric relationship between unemployment and output. In this paper I investigate theexistence of asymmetries in the Okun coefficient in Romanian economy. The asymmetric approachis justified based on both practical reasons, given the last results in the literature, as well as froma theoretic point of view. The econometric framework used is the Markov Switching approach. Thedata used is at monthly frequency and consists in the monthly industrial production index and inthe unemployment rate between January 1991 and December 2009. The Regime switchingapproach allows for the testing whether the Okun relation switches between different phases. I findthat there are asymmetries in the Okun coefficient. A state characterized by a weaker Okuncoefficient of -0.09 was found, and a state with a stronger Okun coefficient of -0.32. After 1999, theswitches are associated with the two phases of the business cycles, with a weaker Okun coefficientduring the expansion and a stronger Okun relationship during the recession, as in the literature,underlining that the Romanian economy became a full market economy. The findings herereconcile the previous findings based on symmetric approaches. Some policy implications as wellas the peril of a jobless recovery are discussed. This paper thus contributes to the ongoingrefinement and understanding of the output - unemployment relationship." @default.
- W2186014952 created "2016-06-24" @default.
- W2186014952 creator A5011633857 @default.
- W2186014952 date "2012-01-01" @default.
- W2186014952 modified "2023-09-30" @default.
- W2186014952 title "ASYMMETRY IN THE OKUN COEFFICIENT IN ROMANIAN ECONOMY" @default.
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