Nevertheless the analysis of Shifotoka was also based on three variables, yet she had used the bank rate instead of real GDP. ADF and PP in levels and first difference It can be interpreted as a trade-off between inflation and unemployment. Make use of interest rate to stabilize the economy Lastly, the government should not have the fear to reduce unemployment because inflationary pressure can be curbed with interest rate policy. Between and , it had drastically hiked by 9.

The long-run Phillips curve does not hold the anticipated inflation rate constant, though it holds the natural rate of unemployment constant, and that is what differentiates it from the short-run curve. Skip to main content. Johannes Hadula and to my beloved parents Mr. Use of this site constitutes acceptance of our User Agreement and Privacy Policy. Become a Redditor and subscribe to one of thousands of communities. A Case of the Indian economy. However, only inflation rate and unemployment became stationary at 1st difference in ADF test but real GDP remained non-stationary even after 2nd difference.

It was in the very same year when A. That confirms the notion of Okun that when GDP increase, the rate of unemployment declines.

The okums root test indicated that, inflation rate, unemployment rate and real GDP are non-stationary I level form. Education on the importance of saving may also help to curb okusn in Namibia in order to follow the footsteps of Japan that saves more than consuming and thereby curb demand inflation. The major factors that exacerbated unemployment in Namibia since independence are identified by Mwingaas population growth, rise in female labor force participation, fast growing young unskilled labor force, low employment intensity of economic GDP growth, insufficient effective demand and Supply-driven training.

(PDF) The Relevance of The Phillips pdf | Johanna Pangeiko Nautwima –

Lastly, I would like to thank all my friends for every hand they had given, particularly Anna Kambo, Penouwa P. I would also like to thank all my lecturers and other staff members of the Economics Department from the Savitribai Phule Pune University in general.


The relationships between the variable 4. Structure of the study The study is structured as follows: Afterit had fallen from Despite the various dilemmas for real GDP plus several attempts to tackle them, real GDP remains the focus of most empirical work dealing with growth and comparing the success of numerous economic strategies and policies.

Johannes Hadula and to my beloved parents Mr. Furthermore, fluctuations in inflation expectations have the potential to shift the Phillips curve.

thesis on okuns law

The study utilized yearly data set fromin exclusion of and when there was a global financial shock. Secondly, its analysis was based on three variables inflation, unemployment and GDPunlike for Ogbokor that was only based on two variables inflation and unemployment.


F-Testing The F-test shows the overall performance of the regression model. Annual macroeconomic time series secondary data for Namibia for Ten years from toexcluding the data of and when financial crisis had hit the globe were used for the analysis. oaw

The negative relationship between the two variables implies the existence of the Phillips curve in the Namibian economy. Bivariate regression result for the three equations In the short run, the Phillips curve holds both expected inflation rate and natural rate of unemployment constant, as shown in figure 3.

Background of the study The Phillips curve has been a dominant focus in macroeconomics from the time of s.

Nevertheless, their results revealed an inverse nexus between the rates of inflation and unemployment. Econometric Framework and Model Specification thrsis. Meaning, it shows the nexus between inflation and omuns when the actual rate of inflation is equivalent to the expected inflation rate.


The chapter is divided into four subdivisions whereby section 3. In the same year, unemployment recorded the minimum rate of The temporary trade-off comes not from inflation per se, but from unanticipated inflation, which generally means from the rising rate of inflation.

thesis on okuns law

I, Johanna Pangeiko Nautwima, grant the Savitribai Phule Pune University the right to reproduce this dissertation in whole or in parts, in any manner or format, which the Savitribai Phule Pune University may deem to fit, for any person or institution requiring it for study and research; providing that Savitribai Phule Pune University shall waive this right if thesus whole thesis has been or is being published in a satisfactory manner for the University.

This chapter presents the historical behavior for the aforementioned variables in Namibia from toexcluding Introduction Many countries have been facing a threat of unemployment and inflation, irrespective of their stage of development, Namibia included.

thesis on okuns law

Hence real wages would adjust to equalize the demand and supply okus labor, resulting in what is called the natural rate of unemployment. Background of the study I thought about testing this law against the recovery from the crisis and I came up with this thesis: It consists of six chapters whereby Chapter One introduces the background of the study, research problem, research objectives and the organization of the study.

Contrariwise, they stated that the existing trade-off oh not be sustainable since the Phillips curve has the probability to shift.