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Estimation of Okun Coefficient for Algeria

KORI YAHIA, Abdellah (2018): Estimation of Okun Coefficient for Algeria.

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The objective of this paper is to investigate the presence of Okun’s (1962) relationship for Algeria for the 1970- 2015 period. Two methodologies are employed to estimate the Okun coefficient: An Autoregressive Distributed Lag (ARDL) linear model and a Bayesian Normal Linear Regression model. The results indicate an Okun coefficient of about -0.2 which suggests some rigidity of the labour market in Algeria.

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