Gregory Alan Krohn

Abstract

Jeon and Vernengo apply Okun’s Law and Verdoorn’s Law to examine the cyclical and structural effects of output growth on productivity. Their estimation method, however, is flawed, and their results are not robust. New estimates indicate that less of the variation in labor productivity growth is explained, that the Verdoorn and Okun coefficients are unstable over time, and that the results after 1973 are inconsistent with Kaldor’s interpretation of Verdoorn’s Law.

Keywords

Productivity, business cycles, economic growth, empirical analysis in political economy

From: Review of Radical Political Economics 2019 51 (1)

Editor: Wang Yi