Document Type

Article

Publication Date

2019

Journal Title

Research in Business Economics Journal

Volume

13

Abstract

In this paper, we test Okun’s coefficient to determine if the relationship between GDP and the employment rate holds true for the Brazilian economy during our testing period. Using quarterly data ranging from 1997Q1 to 2015Q2, we develop a finite distributed lag model so that we can examine the relationship between the change in the unemployment rate as the dependent variable and the growth rate in GDP as the independent variable. Our findings indicate that the Okun’s coefficient is significant at 1 lag of GDP in our model. Our estimate of Okun’s coefficient is -0.140473.

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