Seminario 19/27: José García Solanes (UM) – New insights into the nonlinearity of Okun’s law
We estimate Okun’s relationship for four European countries (France, Germany, the Netherlands and Spain) with a nonparametric procedure, without imposing a previous specific functional form. We apply the non parametric MARS methodology that endogenously detects multiple thresholds and therefore is able to identify multiple possible regimes. In addition, we control for the Euro area crisis…
