Unemployment Reduction Prowess under Bush versus Obama Years

24 Pages Posted: 20 Sep 2012 Last revised: 25 Sep 2012

See all articles by Hrishikesh D. Vinod

Hrishikesh D. Vinod

Fordham University - Department of Economics

Date Written: September 24, 2012


This paper attempts to compare the performance of presidents George W. Bush and Obama in the context of reduction of unemployment by comparing the Beveridge curve tradeoffs between vacancy and unemployment rates. We consider monthly data and measure the output of the economy as gross value of industrial production to define the output labor ratio. A new kind of production function is fitted showing how the friction scale elasticities, marginal elasticities and elasticities of substitution are quite different under Bush and Obama. The discrepancy is related to our not including capital input, interest rates, wage rates and similar important variables in our simplified model. However, we provide new isoquant maps with distinct appearances during Bush and Obama years providing mild support for Zingales (2012). Ultimately, there might be distinct employer evaluations of expected future profitability during the Bush and Obama periods. We implement this in a completely reproducible and transparent manner using the free R software.

Keywords: Unemployment, Vacnacies, Bush, Obama, Elasticities, Friction, R software

JEL Classification: E2, E6, C4

Suggested Citation

Vinod, Hrishikesh D., Unemployment Reduction Prowess under Bush versus Obama Years (September 24, 2012). Available at SSRN: https://ssrn.com/abstract=2149316 or http://dx.doi.org/10.2139/ssrn.2149316

Hrishikesh D. Vinod (Contact Author)

Fordham University - Department of Economics ( email )

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