@techreport{20.500.12134/7010,
author = {Flórez, Luz Adriana},
author = {Pulido-Mahecha, Karen L.},
author = {Ramos-Veloza, Mario Andrés},
year = {2018},
month = {2},
url = {https://repositorio.banrep.gov.co/handle/20.500.12134/7010},
abstract = {This paper identifies Okun´s law in Colombia between 1984 and 2016 using a
Vector Error Correction Model (VECM) as there is evidence of a long-term
relationship between the unemployment rate and the GDP. Results suggest that
after a one percent increase in GDP, the unemployment rate is reduced by 0.45
percentage points in the long run (after sixteen quarters). In addition we inspect
for nonlinearities using a threshold cointegration model (TVECM). Results
suggest the existence of two regimes a low and a high one. The high regime starts
at the late nineties and is associated with a more flexible labor market. Under
this regime, a 1% increase in GDP, reduces the UR 0.6 percentage points after
eighteen quarters. By contrast, under the low regime the response is 0.2
percentage points after eight quarters},
publisher = {Banco de la República de Colombia},
booktitle = {Borradores de Economía},
volume = {Borradores de Economía; No. 1039},
keywords = {Ley de Okun},
keywords = {Cointegración},
keywords = {No linealidades},
title = {Okun´s law in Colombia: a non-linear cointegration},
keywords = {Okun´s law},
keywords = {Co-integration},
keywords = {Nonlinearities.},
doi = {https://doi.org/10.32468/be.1039},
}