Okun’s Law: Evidence for the Brazilian Economy

In this article we seek to estimate the Brazilian “Okun’s law” with quarterly data ranging from 1980Q1 until 2013Q3. Considering the typical Okun's relationship, Δu=α - βΔy, where “β” is the Okun coefficient, we have obtained estimates of β between -0.1878 and -0.2055, such values are similar to those of Italy (-0.21) and greater than the value of Japan (-0.12), but lower than those in countries like the UK (-0.58), USA (-0.52), France (- 0.43) and Germany (-0.38); the latter values were estimated by Sogner and Stiassny (2002).