Testing for convergence of the Okun's law coefficient in Europe

摘要: Without convergence of macroeconomic parameters representative the nature adjustment mechanisms, even a common shock to members monetary union can lead different consequences across and, eventually, need for more or less co-ordinated specific policies. In this paper, we test presence Okun’s Law coefficient (OLC) among several alternative groupings European economies. The empirical strategy adopted is based on evaluation time path rolling regression estimates OLC countries. We then use testing procedure suggested by Evans [Evans P (1996) J Econ Dynam Control 20:1027–1049] investigate convergence, non-convergence, in groups countries examining how cross-country variance evolves over these groups. A hypothesis medium-term rejected most country examined.