Do Forecasters Believe in Okun's Law? : An Assessment of Unemployment and Output Forecasts /

This paper provides an assessment of the consistency of unemployment and output forecasts. We show that, consistent with Okun's Law, forecasts of real GDP growth and the change in unemployment are negatively correlated. The Okun coefficient-the responsiveness of unemployment to growth-from fore...

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Autor principal: Ball, Laurence
Altres autors: Jalles, Joao Tovar, Loungani, Prakash
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 2014.
Col·lecció:IMF Working Papers; Working Paper ; No. 2014/024
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Accés en línia:Full text available on IMF
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Sumari:This paper provides an assessment of the consistency of unemployment and output forecasts. We show that, consistent with Okun's Law, forecasts of real GDP growth and the change in unemployment are negatively correlated. The Okun coefficient-the responsiveness of unemployment to growth-from forecasts is fairly similar to that in the data for various countries. Furthermore, revisions to unemployment forecasts are negatively correlated with revisions to real GDP forecasts. These results are based on forecasts taken from Consensus Economics for nine advanced countries since 1989.
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Descripció física:1 online resource (19 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accés:Electronic access restricted to authorized BRAC University faculty, staff and students