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Clifford L. F. Attfield
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Publisher: Journals Gateway
The Review of Economics and Statistics (1997) 79 (2): 326–329.
Published: 01 May 1997
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This paper reassesses a finding by Martin Prachowny (1993) that the value of the Okun coefficient for the United States (linking unemployment changes to output changes) is only around −0.67 rather than around the more typical value of −2.25. Using a cointegration framework, and the same data sets as Prachowny, we find, for one of the data sets, that the Okun coefficient is much closer to a value of −2.25, which supports previous research work.