Abstract
This chapter develops and tests a model which finds that Okun’s law of the negative relationship of GDP to unemployment holds remarkably well and that inflation and several shocks (oil prices in 1973, Hurricane Katrina in 2005, and the fiscal crisis in 2008) explained considerable fluctuation in unemployment as well.
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References
Okun, A. (1962). “Potential GNP: Its Measurement and Significance”. Proceedings of the Business and Economics Statistics Section, American Statistical Association. Washington, DC: American Statistical Association.
Woodridge, J. (2003). Introductory Economics: A Modern Approach, 2nd ed. Mason, OH: Thomson South Western.
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Heim, J.J. (2017). Determinants of Unemployment. In: An Econometric Model of the US Economy. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-50681-4_12
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DOI: https://doi.org/10.1007/978-3-319-50681-4_12
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Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-319-50680-7
Online ISBN: 978-3-319-50681-4
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