Record Details

The Validity of Okun’s Law: An Assessment of United Kingdom’s Unemployment-Output Relationship

International Journal of Economic Practices and Theories

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Field Value
 
Title The Validity of Okun’s Law: An Assessment of United Kingdom’s Unemployment-Output Relationship
 
Creator Stober, Emmanuel Olusegun
 
Subject Macroeconomics,Microeconomics,International Business,Econometrics and statistics
Okun’s law, Okun’s coefficients Unemployment, Output.
C12, C22, E24, O51
 
Description Forgone output resulting from unemployment is a real concern for many countries including the United Kingdom which manages to keep it unemployment rate at an average of 7% over the last 43 years. This paper provides an assessment of the unemployment-output relationship by examining the validity of okun’s law, using quarterly time series data from 1971- 2013. The empirical evidences show negative correlation, implying that Okun’s law interpretation is applicable to United Kingdom with economic growth rate of 1.8% required to keep unemployment constant. While the evolution of the unemployment rate is also influenced by other unforeseen variables like productivity, severe winter weather condition and the Diamond Jubilee in 2012.
 
Publisher International Journal of Economic Practices and Theories
 
Contributor —
 
Date 2015-01-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.ijept.org/index.php/ijept%20/article/view/The_Validity_of_Okun_Law_An_Assessment_of_United_Kingdom_Unemployment-Output_Relationship
 
Source International Journal of Economic Practices and Theories; Vol 5, No 1 (2015); 10-15
2247 – 7225
 
Language eng
 
Relation http://www.ijept.org/index.php/ijept%20/article/view/The_Validity_of_Okun_Law_An_Assessment_of_United_Kingdom_Unemployment-Output_Relationship/pdf_81