18
Table 6.2: Okun’s law: estimation and testing results
Non-spatial GLS estimation |
Spatial SUR estimation | |||
Coefficient |
t-statistic |
Coefficient |
t-statistic | |
Output growth |
-0.0510 |
-11.336 |
-0.0453 |
-9.032 |
Constant |
0.0020 |
11.036 |
0.0010 |
7.781 |
D93 |
0.0996 |
16.862 |
0.0157 |
29.453 |
D00 |
-0.0090 |
-26.983 |
-0.0055 |
-18.740 |
Unempl. threshold |
0.0401 |
10.946 |
0.0219 |
6.125 |
R2 SER |
SSR |
R2 SER |
SSR | |
0.305 0.010 |
0.133 |
0.524 0.008 |
0.091 |
Non-spatial GLS |
Spatial SUR estimation | |||
Moran's I residuals |
Moran's I residuals |
Significant eigen- |
Moran's I spatial | |
1993 |
0.180 (4,043) |
0.002 (1,278) |
2, 4, 7, 12, 14, 16, 21, 22, 27, 33, 36, 37 |
0.702 |
1994 |
0.518 (11,199) |
0.043 (2,201) |
1, 2, 3, 5, 6, 7, 10, 12, 14 |
0.965 |
1995 |
0.375 (8,081) |
0.081 (2,851) |
1, 2, 3, 4, 7, 10, 13, 31 |
0.938 |
1996 |
0.321 (6,931) |
0.020 (1,374) |
1, 2, 3, 9, 10, 16, 17 |
0.949 |
1997 |
0.693 (14,756) |
0.061 (3,230) |
1, 2, 3, 4, 6, 7, 14, 21, 25, 29, 31, 32, 33, 34, |
0.891 |
1998 |
0.402 (8,645) |
0.025 (1,237) |
1, 2, 6, 9, 10, 23, 25, |
0.802 |
1999 |
0.236 (5,114) |
0.026 (1,878) |
6, 8, 10, 13, 14, 16, 17, 26, 27, 28, 33 |
0.721 |
2000 |
0.559 (12,058) |
0.024 (2,136) |
1, 2, 3, 4, 5, 7, 17, 19, |
0.939 |
Notes: Non-spatial GSL estimation is based on the SUR model (3.4) without applying the spatial filtering
approach. .D93, D00: Dummies for 1993 and 2000, R2: coefficient of determination, SER: stan-
dard error of regression, SSR: sum of squared residuals
Table 6.2 reports the results of the FD specification of Okun’s law. The law is supposed
to hold over the entire sample period. However, although all coefficients are significant
with the expected signs, their magnitude appear to be very low. Due to persistence ef-
fects, unemployment does not react very much in response to a change in the growth
rate.
More intriguing information
1. EFFICIENCY LOSS AND TRADABLE PERMITS2. The duration of fixed exchange rate regimes
3. ANTI-COMPETITIVE FINANCIAL CONTRACTING: THE DESIGN OF FINANCIAL CLAIMS.
4. Developing vocational practice in the jewelry sector through the incubation of a new ‘project-object’
5. The name is absent
6. Types of Cost in Inductive Concept Learning
7. The name is absent
8. A multistate demographic model for firms in the province of Gelderland
9. EMU: some unanswered questions
10. The name is absent