Monday, February 3, 2025
From a paper by Martin Boďa and Mariana Považanová:
“In order to canvass the state of the art of research on Okun’s law, the paper surveys 84 articles published in Web of Science™ journals between 1995 and 2020 occupied with estimating the relationship between unemployment and output in the spirit of an approach proposed by Okun (1962). A bibliometric analysis is conducted to identify the most influential works and authors, to establish links between them, and to outline research fronts with main paths of knowledge diffusion. Under a content analysis, the articles included in the survey are further classified by their leitmotif and research agenda as well as by their geographical scope. The basal methodological choices of the articles are overviewed and their temporal patterns are studied. An emphasis is put on the stylized facts constituting the research agenda of 57 of the surveyed applications of Okun’s law (such as instability over time, asymmetries, or age and gender specificity). A majority of studies estimated Okun’s law on the basis of a regression equation that may suggest that it is unemployment that responds to fluctuations in output and adopted the difference version of Okun’s law. In estimating the gap version, the Hodrick-Prescott filter has continued to be a preferred choice despite its well-known flawed statistical properties. Lotka’s law indicates an above-average level of research productivity of authors in this field. The findings provide insights into the intellectual structure of the empirics of Okun’s law and act as guidance for future research on cyclical unemployment-output fluctuations.”
Posted by 1:13 PM
atLabels: Inclusive Growth
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