Regional growth and unemployment in the medium run: asymmetric cointegrated Okun's Law for UK regions

Silvia Palombi, Roger Perman, Christophe Tavéra

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

This article tests for the presence of a medium-run asymmetric Okun's Law relationship between regional output and regional unemployment rate in UK regions. The test is performed with a panel data version of the hidden cointegration technique suggested by Granger and Yoon. A novelty of the article is to combine the method of hidden cointegration with a panel data method of removing cross-sectional dependence. The medium-run Okun relationship for regions in the UK appears to confirmresults found elsewhere in the literature on countries as a whole, although the coefficients tend to be smaller.
LanguageEnglish
Pages6228-6238
Number of pages11
JournalApplied Economics
Volume47
Issue number57
DOIs
Publication statusPublished - 27 Jul 2015

Fingerprint

Okun's law
Regional unemployment
Cointegration
Regional growth
Coefficients
Cross-sectional dependence
Panel data
Novelty
Unemployment rate
Panel data methods

Keywords

  • Okun's Law
  • hidden cointegration
  • panel cointegration
  • regional growth
  • regional unemployment

Cite this

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title = "Regional growth and unemployment in the medium run: asymmetric cointegrated Okun's Law for UK regions",
abstract = "This article tests for the presence of a medium-run asymmetric Okun's Law relationship between regional output and regional unemployment rate in UK regions. The test is performed with a panel data version of the hidden cointegration technique suggested by Granger and Yoon. A novelty of the article is to combine the method of hidden cointegration with a panel data method of removing cross-sectional dependence. The medium-run Okun relationship for regions in the UK appears to confirmresults found elsewhere in the literature on countries as a whole, although the coefficients tend to be smaller.",
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Regional growth and unemployment in the medium run : asymmetric cointegrated Okun's Law for UK regions. / Palombi, Silvia; Perman, Roger; Tavéra , Christophe.

In: Applied Economics, Vol. 47, No. 57, 27.07.2015, p. 6228-6238.

Research output: Contribution to journalArticle

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AU - Perman, Roger

AU - Tavéra , Christophe

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