HO-CHUAN (RIVER) HUANG; CHANG, YA-KAI - In: Manchester School 73 (2005) 5, pp. 599-611
This study proposes a structural change with threshold approach to re-evaluate the empirical validity of Okun's law using data from Canada. Based on the Hodrick-Prescott and band-pass filtered data, we find strong support of structural change as well as threshold nonlinearity. This suggests that...