tag:blogger.com,1999:blog-8595404115121834255.post5803012934940677922..comments2024-03-28T03:24:05.678-04:00Comments on NAKED KEYNESIANISM: Okun's Law is doing fineMatias Vernengohttp://www.blogger.com/profile/09521604894748538215noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-8595404115121834255.post-43660885727087017742013-02-02T08:25:33.286-05:002013-02-02T08:25:33.286-05:00Hi Matias. Char at Creative Destruction has a new ...Hi Matias. Char at <a href="http://gecon.blogspot.com/2013/02/trying-to-make-sense-of-gdp-report.html" rel="nofollow">Creative Destruction</a> has a new post "Trying to make sense of the GDP report" and finds a "strong positive correlation" between change in hours worked and change in GDP. Supports Okun's law, if I read it right.<br /><br />Reading your thoughts here again, I am interested in your footnote regarding <b>changes in the relation between output and unemployment</b>. I agree that the slope may change as the economy changes, without invalidating Okun's law.<br /><br />There is only analogy here, but I see the same process affecting the Phillips curve (and <a href="http://nakedkeynesianism.blogspot.com/2013/01/phillips-curve-what-curve.html?showComment=1358781868633#c5307963008676862979" rel="nofollow">you</a> apparently do not!)<br /><br />Anyway, you have made me more interested in this topic than ever. Thanks.<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-8595404115121834255.post-52208113378342675672013-01-23T13:09:50.141-05:002013-01-23T13:09:50.141-05:00Yes Okun's had three different versions in his...Yes Okun's had three different versions in his seminal paper, one being that growth above potential reduced unemployment. It's in fact the version I use in my paper in the Review of Radical Political Economics (2008) on the topic.Matias Vernengohttps://www.blogger.com/profile/09521604894748538215noreply@blogger.comtag:blogger.com,1999:blog-8595404115121834255.post-74515846079149682612013-01-06T12:16:11.598-05:002013-01-06T12:16:11.598-05:00Matias you may know this already, but I didn't...Matias you may know this already, but I didn't. CBO uses "a variant" of Okun's law to estimate potential output. <br /><br />http://www.cbo.gov/sites/default/files/cbofiles/ftpdocs/51xx/doc5191/03-16-gdp.pdf<br /><br />Like you, the CBO still thinks Okun's law is valid.<br />The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.com