New insights into the nonlinearity of Okun's law

• Published in: Economic modelling Vol. 82; pp. 202 - 210
• Main Authors: Nebot, César, Beyaert, Arielle, García-Solanes, José
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.11.2019
• Subjects: Labour market; MARS methodology; Nonlinear model; Okun's law; Thresholds; Thresholds; MARS methodology; Nonlinear model; Okun's law; Labour market

We estimate Okun's relationship for four European countries (France, Germany, the Netherlands and Spain) with a nonparametric procedure, without imposing a previous specific functional form. We apply the non parametric MARS methodology that endogenously detects multiple thresholds and therefore...