dc.contributor.author | Foroni, Claudia | |
dc.contributor.author | Furlanetto, Francesco | |
dc.date.accessioned | 2022-06-03T10:58:13Z | |
dc.date.available | 2022-06-03T10:58:13Z | |
dc.date.issued | 2022 | |
dc.identifier.isbn | 978-82-8379-228-7 | |
dc.identifier.issn | 1502-8190 | |
dc.identifier.uri | https://hdl.handle.net/11250/2997497 | |
dc.description.abstract | Despite its stability over time, as for any statistical relationship, Okun’s law is subject to deviations that can be large at times. In this paper, we provide a mapping between residuals in Okun’s regressions and structural shocks identified using a SVAR model by inspecting how unemployment responds to the state of the economy. We show that deviations from Okun’s law are a natural and expected outcome once one takes a multi-shock perspective, as long as shocks to automation, labor supply and structural factors in the labor market are taken into account. Our simple recipe for policy makers is that, if a positive deviation from Okun’s law arises, it is likely to be generated by either positive labor supply or automation shocks or by negative structural factors shocks. | en_US |
dc.language.iso | eng | en_US |
dc.publisher | Norges Bank | en_US |
dc.relation.ispartofseries | Working paper;4/2022 | |
dc.rights | Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal | * |
dc.rights.uri | http://creativecommons.org/licenses/by-nc-nd/4.0/deed.no | * |
dc.subject | JEL: E24 | en_US |
dc.subject | JEL: E32 | en_US |
dc.subject | JEL: C32 | en_US |
dc.subject | Okun’s law | en_US |
dc.subject | labor markets | en_US |
dc.subject | business cycle fluctuations | en_US |
dc.subject | bayesian VAR | en_US |
dc.title | Explaining Deviations from Okun’s Law | en_US |
dc.type | Working paper | en_US |
dc.description.version | publishedVersion | en_US |
dc.subject.nsi | VDP::Samfunnsvitenskap: 200::Økonomi: 210::Samfunnsøkonomi: 212 | en_US |
dc.source.pagenumber | 31 | en_US |