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

5 Citations (Scopus)
39 Downloads (Pure)

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.
Original languageEnglish
Pages (from-to)6228-6238
Number of pages11
JournalApplied Economics
Volume47
Issue number57
DOIs
Publication statusPublished - 27 Jul 2015

Keywords

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

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