Unemployment forecasts, time varying coefficient models and the Okun's law in Spanish regions

During the Great Recession, output and unemployment responses have differed markedly across Spanish regions. Our objective is to evaluate the relative accuracy of forecasting models based on the Okun's law compared to alternative approaches. In particular, we want to analyse if a time varying c...

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Detalles Bibliográficos
Autores: Clar López, Miquel, López-Tamayo, Jordi, Ramos Lobo, Raúl
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2014
País:España
Institución:Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)
Repositorio:Recercat. Dipósit de la Recerca de Catalunya
OAI Identifier:oai:recercat.cat:2445/68502
Acceso en línea:https://hdl.handle.net/2445/68502
Access Level:acceso abierto
Palabra clave:Atur
Mercat de treball
Producte interior brut
Cicles econòmics
Unemployment
Labor market
Gross domestic product
Business cycles
Descripción
Sumario:During the Great Recession, output and unemployment responses have differed markedly across Spanish regions. Our objective is to evaluate the relative accuracy of forecasting models based on the Okun's law compared to alternative approaches. In particular, we want to analyse if a time varying coefficient specification of the Okun's law provide better forecasts than alternative models in two different periods: a first period from 2002 to 2007 characterized by sustained economic growth in all provinces, and a second period from 2008 to 2013 characterized by the impact of the Great Recession. The obtained results allow us to conclude that, in general, the use of these models improve the forecasting capacity in most regions, but do not provide reliable forecast.