Lang, Dany; Peretti, Christian de - In: International Review of Applied Economics 23 (2009) 4, pp. 445-462
This paper presents a 'strong hysteretic' version of Okun's Law, that is, a version of the law in which 'history matters.' In this version of the link between fluctuations in unemployment and growth, the most important past growth shock exerts an influence on the current unemployment rate. A...