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- W3200768497 abstract "This paper investigates the direction of co-movement between cyclical components of unemployment and output in the US by using the wavelet methodology over the period 1948Q1−2020Q4. The results show that the direction of co-movement is rather idiosyncratic in the short-term with Okun's effect being validated only during economic turbulences. The evidences also reveal that the direction of interaction is related to the economic shocks and their internal or external origins. The findings related to pandemic disease should be interpreted with caution. In the medium-term, Okun’s law follows the demand approach, as the Keynesian unemployment is evidenced at the business cycle with the GDP negatively running unemployment. Noteworthy here is that the link is sensitive to economic volatility, disappearing during low volatility level. In the long-term, the results show that the supply approach is operative. In this case, unemployment negatively drives GDP, proving classical unemployment." @default.
- W3200768497 created "2021-09-27" @default.
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- W3200768497 date "2021-11-01" @default.
- W3200768497 modified "2023-10-17" @default.
- W3200768497 title "Okun's law in the US: New insights in time and frequency" @default.
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- W3200768497 doi "https://doi.org/10.1016/j.qref.2021.09.008" @default.
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